GameStop outlook slows sector
GameStop, the largest U.S. video game retailer, reported a disappointing profit outlook Tuesday that overshadowed its strong third-quarter results, sending its stock down 3.7% to $51.01. GameStop said its profit in the fourth quarter would be up to 97 cents a share, short of analysts’ expectations of $1.01. For the third quarter, GameStop said profit more than tripled to $52 million on revenue that jumped to $1.6 billion from $1 billion. GameStop’s guidance sent shares of the major video game publishers down as well, with Activision falling 3.9%, Electronic Arts down 1.4%, THQ down 4.5% and Take-Two Interactive Software falling 2.3%.
DreamWorks Ani buy
DreamWorks Animation repurchased 357,000 shares of common stock held by investor David Geffen, according to a regulatory filing DreamWorks submitted Tuesday to the U.S. Securities and Exchange Commission. DreamWorks will pay $28.413 for each share, for a total of about $10.1 million. The repurchase will be completed today. Shares of DreamWorks fell 1.2% to $27.96.
