gme announced excellent fourth-quarter results this morning and i'd like to recap the numbers.
the company reported a profit of $1.14 a share, which was slightly ahead of guidance and wall street's expectations. sales rose 24.4% to $2.9 billion in the quarter, with same- store sales rising an impressive 17.4% despite industry- wide shortages of key products such as the nintendo wii game console. gme attributed the sales momentum to strength in new-game sales, which rose an impressive 38% in the fourth quarter.
gme also issued very strong guidance, expecting earnings to amount to $2.25 to $2.34 a share this year, which compares well to the current analyst consensus of $2.22 a share -- especially considering gme's tendency to guide conservatively. the company also said that it expects earnings to grow at least 25% next year, implying earnings of at least $2.87 a share, which is nicely ahead of wall street's expectations of $2.66 a share in profit. the company's first-quarter outlook was also impressive, with management expecting the company to report a profit of 32 cents to 33 cents a share in the first quarter of this year vs. consensus expectations of 29 cents a share.
i remain rather impressed with gme's rock-solid execution, and i continue to view the stock as undervalued. the video-game industry is booming right now, and i believe gme will continue to be a major beneficiary.
disc: long gme