Strong gaming industry sales should boost GameStop Corp.'s fourth-quarter earnings, an analyst said Tuesday, pushing shares of the world's largest video game retailer up 4 percent.
Sterne Agee analyst Arvind Bhatia said in a note to investors that GameStop's earnings, to be released Thursday, will be in line with its recent guidance. Last month, GameStop raised the low end of its estimate and said sales should top Wall Street forecasts despite the recession.
The Grapevine, Texas-based company also gave a solid outlook for the current year, saying it now expects earnings of $1.33 to $1.34 per share on sales of $3.5 billion, 22 percent higher than a year earlier. Previously, the company had forecast a profit of $1.31 to $1.34 per share.