GameStop Q3 profit higher-than-expected, shares rise

GRAPEVINE, Tex. GameStop reported sales and earnings results for the third quarter ended Oct.31.

Total company sales in the quarter were $1.83 billion, an 8.2% increase as compared with sales of $1.7 billion in the prior year quarter. Comparable-store sales decreased 7.8%, attributable primarily to a decline in new video game hardware sales.

Net earnings for the quarter were $52.2 million, an 11.8% increase as compared with net earnings of $46.7 million in the prior year period. Diluted earnings per share were 31 cents, compared with 28 cents in the prior year quarter.

For fourth quarter fiscal 2009, GameStop is reaffirming guidance of diluted earnings per share to range from $1.47 to $1.65, as compared with $1.39 in the prior year period. Comparable-store sales are projected to range from -7.0% to -1.0%.

Full year diluted earnings per share are forecast to range from $2.45 to $2.63 and comparable-store sales are projected to range from -7.0% to -4.0% for the full year.