GameStop stock pops following earnings beat, Q4 sales growth

Yahoo Finance's Ines Ferré breaks down the market reaction to GameStop Q4 earnings.

Video Transcript

SEANA SMITH: We've got to get to some breaking news. GameStop out with its most recent earnings report. Look at that, shares popping 17%. Ines has the numbers for us. Ines.

INES FERRE: Yeah, and quite a beat on the top and the bottom line. In fact, GameStop reporting an adjusted earnings per share of $0.16. The Street had been expecting a loss per share of $0.15. Also looking at their net sales, that came in at $2.23 billion. The Street was expecting for $2.18 billion. The company also in the fourth quarter reporting proceeds from the sale of digital assets of $4.5 million, so a beat on the top and on the bottom line, a big beat because the company did report earnings per share, a profit per share for its latest quarter. Keep in mind that GameStop had reported losses in all but one of the past 11 quarters. This past one reverses that trend, guys.

SEANA SMITH: Certainly does. And we're seeing some of the excitement out there on the Street, up 23%. Keep in mind, though, yes, the sales was a beat, but it's still off 1% year over year. So coming in just above what the Street was expecting.

DAVE BRIGGS: Yeah, but a catalyst unrelated to the retail trade is rather remarkable at this point. It's almost like if Bed and Bath were to post a solid number at this point.

SEANA SMITH: That is true.

DAVE BRIGGS: It's a surprise.

SEANA SMITH: It's hard to wrap your head around any of the action that we're seeing in names like this, but again, a huge pop after-hours in GameStop.