To The Moon

GameStop has reported a rise in profit for its first fiscal quarter and announced that its board has approved a new share repurchase authorization valued at $2 billion.

The video game retailer disclosed on Tuesday that it achieved a profit of $389.6 million, or 66 cents per share, for the quarter. This compares to a profit of $44.8 million, or 9 cents per share, during the same period last year.

On an adjusted basis, which excludes certain one-time items, the company reported earnings of 30 cents per share.

Sales increased to $835.3 million from $732.4 million a year earlier. The company attributed the sales growth to its collectibles business.

GameStop Corp. (NYSE: GME)

GameStop also stated that its board has approved a $2 billion share repurchase authorization. This authorization is effective for three years and will replace a previous one approved in March 2019.

In after-hours trading on Tuesday, GameStop's stock price rose 8.2% to $22.63. The stock had closed the regular session down 2% at $20.92, but has gained 4.2% year-to-date.

The earnings release follows a prior announcement from GameStop's CEO, Ryan Cohen, regarding a proposal to acquire eBay for $56 billion. Last month, eBay stated that its board and independent advisors, after evaluating the proposal, decided to reject it. The cited reasons included uncertainties around financing and risks related to leverage and leadership in a combined company.

GameStop later disclosed in a filing that it holds a 6.55% stake in eBay's outstanding shares, an increase from its previously reported holding of approximately 5%.

Recently, GameStop has also sought shareholder approval to increase the number of its authorized shares and for a performance-based option award for CEO Ryan Cohen.