GameStop’s (GME) stock is down 8% after the video game retailer posted financial results that missed Wall Street targets.
For its fiscal third quarter, GameStop reported a loss of $0.01 U.S. per share. That was better than the loss of $0.08 U.S. that analysts had expected.
However, the company’s revenue came in at $1.08 billion U.S., which was below forecasts of $1.18 billion U.S.
GameStop said that its hardware and accessories sales declined to $579 million U.S. in fiscal Q3, down from $627 million U.S. a year earlier. Software sales fell to $321 million U.S. from $352 million U.S. a year ago.
The company also announced that its board of directors has approved a new investment policy that will allow GameStop to invest in stocks and other investment vehicles.
Typically, GameStop has invested its excess cash in investment grade short-term fixed income securities.
The company had $1.20 billion U.S. in cash on hand at the end of October this year.
Before today (Dec. 7), GameStop’s stock had been down 14% and trading at $14.84 U.S. per share.
