May 23 (Bloomberg) -- GameStop Corp., the world’s largest video-game retailer, fell as much as 4 percent after projecting quarterly profit that was lower than analysts’ estimates as consumers wait for new consoles to go on sale later this year.
The shares dropped 1.4 percent to $35.73 at 2:44 p.m. in New York, after earlier declining to $34.80. The stock has advanced 44 percent this year through yesterday compared with a 16 percent gain for the Standard & Poor’s 500 Index.
The video-game industry is weathering a slump in retail sales as some gamers switch to mobile devices and consumers hold off on purchases and await new consoles from Microsoft Corp. and Sony Corp. that will be in stores later this year.
Second-quarter earnings per share will be 1 cent to 7 cents, the Grapevine, Texas-based company said today in a statement. Analysts projected 8 cents, the average of 18 estimates compiled by Bloomberg.
GameStop’s first-quarter profit fell 25 percent to $54.6 million, or 46 cents a share, from $72.5 million, or 54 cents, a year earlier, according to the statement. Sales declined 6.8 percent to $1.87 billion.
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