GameStop Stock Up As Q4 Profit Beats Street, Plans To Buy Bitcoin

(RTTNews) - Shares of GameStop Corp. (GME) gained around 8.3 percent in the extended trading on Tuesday after the company reported higher fourth-quarter profit above market estimates, despite weak revenues. The company also said its board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset.

In its fourth quarter, earnings came in at $131.3 million or $0.29 per share, higher than $63.1 million or $0.21 per share last year.

Adjusted earnings were $136.4 million or $0.31 per share for the period. Analysts on average had expected the company to earn $0.08 per share. Analysts' estimates typically exclude special items.

Adjusted EBITDA of $96.5 million grew from prior year's $88.0 million.

The company's revenue, meanwhile, fell 28.5 percent to $1.28 billion from $1.79 billion last year.

On the NYSE, GameStop shares had closed Tuesday's regular trading at $25.40, down 0.82 percent.

In the after-hours trading, the shares gained 8.3 percent to trade at $27.50.

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