GameStop Corp (NYSE:GME) shares are getting some attention on Tuesday. The stock got a lift after the video game retailer announced a collaboration with Professional Sports Authenticator.
What Happened: GameStop on Tuesday announced that it entered into a collaboration with Professional Sports Authenticator (PSA), a division of Collectors Holdings. PSA offers trading card and autograph authentication and grading services.
Under the collaboration, GameStop will become an authorized PSA dealer. PSA will also provide grading services for trading cards through select GameStop stores across the United States. GameStop began buying and selling graded cards at select stores in May.
The PSA collaboration marks GameStop's latest attempt to reinvent its business as the retailer has struggled to stay relevant with the video game industry increasingly going digital.
GameStop has fallen short of sales estimates in four consecutive quarters, according to data from Benzinga Pro.
In the company's most recent quarter, GameStop reported continued declines in sales and missed analyst expectations, but reported a surprise profit of 1 cent per share versus estimates for a loss of 9 cents per share.
Notably, GameStop ended the quarter with $4.2 billion in cash, cash equivalents and marketable securities as the company has raised capital several times in recent years. Just last month, GameStop said it sold the maximum number of shares under its previously disclosed at-the-market equity offering program for gross proceeds of approximately $400 million.
GameStop is not due to report earnings again until December. The video game retailer is expected to report a loss of 3 cents per share and revenue of $887.7 million, according to analysts estimates from Benzinga Pro. In the comparable quarter last year, GameStop reported breakeven earnings on revenue of $1.18 billion.
GME Price Action: GameStop shares initially popped about 1% on the PSA collaboration before pulling back. The stock was down 0.23% at $21.28 at the time of publication, according to Benzinga Pro.
Photo: JJBers from Flickr.
