This article first appeared on GuruFocus.
Sep 10 – GameStop (NYSE:GME) moved higher about 10% in early Wednesday trading after the video game retailer surprised investors with stronger Q2 results and new details on its cryptocurrency holdings.
The company posted net income of $168.6 million, or $0.25 per share, well ahead of Wall Street’s $0.15 consensus and sharply higher than $0.04 a year earlier. Operating profit returned for the quarter as sales trends improved across its major categories.
Revenue climbed 21.8% year over year, with hardware and accessories representing 60.9% of total sales compared with 56.5% a year ago. Software’s share declined to 15.7% from 26.0%, while collectibles grew to 23.4% from 17.5%. Management highlighted demand for gaming consoles and accessories as a key driver.
In a new disclosure, GameStop revealed Bitcoin holdings valued at $528.6 million as of the end of the quarter. The investment adds a digital asset angle to the turnaround story and may attract additional investor interest as the company diversifies its balance sheet.
