Call of Duty: GameStop's Saving Grace?

Stock quotes in this article: GME , ERTS , MSFT  

(Updated with additional analysis of gaming sector and top-selling games, along with recent stock movements.)

SAN FRANCISCO (TheStreet) -- GameStop(GME) posted a 12% increase in third-quarter profit on Thursday, and announced that the holiday season has kicked off strong with the Call of Duty launch.

During the quarter, the company earned $52.2 million, or 31 cents a share, compared with $46.7 million, or 28 cents, in the year-ago period. Analysts were calling for earnings of 30 cents a share.

Sales jumped 8% to $1.83 billion, but same-store sales tumbled 7.8%, hurt by a decline in video game hardware sales.

"The holiday season has started strong. In the first 72 hours of its release, GameStop sold over 2.5 million copies worldwide of Call of Duty: Modern Warfare 2," CEO Daniel DeMatteo said in a statement. "We are optimistic that the huge success of this game will serve as a bellwether for what we can expect for the remainder of our holiday game sales."

Regardless, the video-game retailer is holding firm to its fourth-quarter guidance in the range of $1.47 to $1.65 a share. Analysts are expecting earnings of $1.57.

For the full year, the company predicts earnings between $2.45 to $2.63 a share.

Sales of new software rose 9.4%, while used product sales jumped 19%.

Other games that helped lift sales include Electronic Arts'(ERTS) "Madden NFL 10," Microsoft's(MSFT) "Halo 3: ODST," Warner Home Video Games' "Batman: Arkham Asylum," 2K Sports' "NBA 2K10" and Nintendo's "Wii Sports Resort."

Shares of GameStop are growing 1.4% to $24.43 in afternoon trading.

-- Reported by Jeanine Poggi in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.

  • Loading Comments...
  •  

SHARE:

  • email
  • print
  • comment
  • digg
  • delicious
  • buzz

Recent Comments





Connect with TheStreet

Dow Jones S&P 500 NASDAQ 10-Year Note
10,685.98 1,159.46 2,378.01 36.53
Oil *
79.02
UP
43.83
UP
8.95
UP
15.80
DOWN
0.51
10 Yr
3.65%
SPDR Gold
110.40
+0.41%
+0.78%
+0.67%
-1.38%
Data delayed 20 minutes

More From TheStreet

Latest Headlines
  • Top Rated Stocks from TheStreet Ratings
  • Find returns with the Dividend Calendar

Brokerage Partners

TheStreet Premium Services

All Services