GameStop Jumps On Strong Earnings Report

| About: GameStop Corp. (GME)

The video game retailer GameStop (NYSE:GME) this morning reported revenue for the fiscal third quarter ended October 28 of $1.01 billion, producing profits of 17 cents a share, or 22 cents on a pro forma basis, at the high end of the company’s previous guidance of 20-22 cents a share. Same-store sales grew 8.8% in the quarter, above previous guidance of 4% to 6%.

For the fiscal fourth quarter, the company expects sales-store sales to grow between 14% and 18%. Diluted EPS is projected at $1.53 to $1.59 a share; full year profits are now forecast at $1.98 to $2.04 a share, narrowing the previous range of $1.94 to $2.04. The company said it continues to see full year fiscal 2007 comparable store sales up 7% to 9%, with total sales up 15% to 17%. Guidance includes 17 cents a share in stock-based compensation,but excludes 5 cents a share in merger-related costs and 3 cents to 5 cents in debt retirement costs.

GameStop shares are up $1.73 this morning to $52.89.