GameStop is sinking after the company said it won't issue annual earnings guidance (GME)

FILE PHOTO: A GameStop Inc. store is shown in Encinitas, California, U.S., May 24, 2017. REUTERS/Mike Blake

  • GameStop plunged in after-hours trading on Tuesday after the company released fourth-quarter results and said it won’t issue annual earnings guidance.
  • The results come a day after the company announced an agreement with activist investors.
  • Shares are trading near a 14-year low; they crashed earlier this year after GameStop’s board ended plans to sell the company. 
  • Watch GameStop trade live.

GameStop shares plunged more than 7% in after-hours trading on Tuesday after earnings results fell short of analysts’ estimates. The company also said it will not offer earnings per share guidance to investors.

Given the planned cost savings and profit improvement initiative and the announcement of a new CEO starting on April 15, 2019, the company is not providing annual earnings per share guidance at this time,” the company said in a release.

Here’s what GameStop reported, compared with what analysts surveyed by Bloomberg expected.

  • Adjusted earnings per share (EPS): $1.45 versus $1.58.
  • Revenue: $3.1 billion versus $3.27 billion.
  • Comparable sales: +1.4% versus -2.1%.

On Monday, GameStop announced an agreement with two activist investors, Hestia Capital Partners and Permit Capital Enterprise Fund, that would add two new independent investors to its board.

The report comes as the company’s shares trade near the lowest level since 2005, having crashed earlier after GameStop’s board earlier this year terminated plans to sell the company. The Texas-based consumer electronics chain has struggled to stay relevant in a changing gamer landscape. 

GameStop has fallen 20% this year through Tuesday’s market close.

Read more markets coverage from Markets Insider and Business Insider:

  • GameStop crashes to 14-year low after board terminates plans to sell the company
  • Lyft is having a messy first few days of trading
  • Dow joins the Dow after being spun off from DowDuPont

GameStop shares.

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