GameStop Stock Rises After Earnings and Revenue Beat Estimates

GameStop beat second-quarter earnings estimates. (Yuki Iwamura/Bloomberg)

GameStop stock was climbing in after-hours trading as the videogame retailer reported better-than-expected financial results for its fiscal second quarter.

GameStop reported adjusted earnings of 25 cents a share on revenue of $972.2 million. Analysts surveyed by FactSet expected the company to report earnings of 19 cents a share on revenue of $900 million.

In the same period last year, GameStop posted earnings of one cent a share on revenue of $798.3 million.

Hardware and accessories is GameStop’s biggest revenue driver. Sales in the segment of $592.1 million rose 31% from last year. Collectibles revenue in the quarter of $227.6 million jumped 63% from the previous year, while software revenue of $152.5 million dropped 27%.

GameStop also said it had cash, cash equivalents, and marketable securities of $8.7 billion at the close of the second quarter, compared with $4.2 billion in the same period last year.

Shares of GameStop were up 1.4% to $23.93 in after-hours trading following the results. The stock, popularly known for sudden spouts of meme activity, has declined 25% this year compared with the S&P 500’s 11% gain.

Write to Angela Palumbo at angela.palumbo@dowjones.com