GameStop profit doubles in Q1

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Video game retailer GameStop Corp. said Wednesday that its first-quarter profit more than doubled, leading it to boost its outlook for full-year 2007. The Grapevine, Texas-based company posted a profit of $24.7 million, compared with $11.7 million a year ago. Revenue jumped 23% year-over-year to $1.3 billion, driven by a 75.1% gain in hardware sales thanks to solid demand for Nintendo Co. Ltd.'s Wii along with Microsoft Corp.'s Xbox 360 and Sony Corp.'s PlayStation 3. GameStop also said its results benefited from demand for games from Nintendo, Sony, Activision Inc., Microsoft and UbiSoft. For the full year, GameStop expects to earn $1.39-$1.42 per share, up from its previous guidance of $1.37-$1.40. However, the stock fell 4.9% on Wednesday to $35.85.
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