There was a time when it was risky to hold on to GameStop (NYSE: GME) during earnings season. Even during the most feverish moments of last year's meme stock frenzy, shares of the video game retailer typically sold off on its first day of trading after announcing fresh quarterly results. We saw GameStop slide following 11 of 13 quarterly updates heading into this year, but in 2022 the stock has moved higher following all three of this calendar year's financial updates. 

GameStop posted what was initially well-received results on Wednesday afternoon. The headline numbers weren't great. Net sales of $1.136 billion for the fiscal second quarter were 4% below where it landed a year earlier. Analysts were holding out for a 7% increase. An uptick in collectibles wasn't able to overcome the year-over-year dip in its larger software and video game hardware categories.

The other end of the income statement is equally uninspiring at first. GameStop posted a loss for the quarter, and that's not a surprise. It's the sixth quarter in a row of red ink. It's not pretty when its highest-margin business -- software -- experiences the largest segment decline. However, the ultimate $0.36-per-share deficit is actually better than what Wall Street pros were targeting. It's the first time in more than a year that GameStop's bottom-line results doesn't fall short of analyst expectations. 

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Source Fool.com