Why Shares of GameStop Jumped Today

Shares of video game retailer GameStop (NYSE: GME) jumped on Wednesday following a third-quarter report that beat analyst expectations. A surprise jump in comparable sales pushed revenue higher, while some discrete tax items led to a big earnings beat. The stock was up about 7% at noon, after being up as much as 11.7% earlier in the day.

GameStop reported third-quarter revenue of $1.99 billion, up 1.5% year over year and $30 million higher than the average analyst estimate. Strong demand for the Nintendo Switch drove an 8.8% increase in new hardware sales and a 5.4% climb in new software sales. Comparable-store sales rose 1.9%, and the company now expects to post positive comps for the year.

The Nintendo Switch is driving strong hardware and software sales for GameStop. Image source: Nintendo.

Source: Fool.com