On Tuesday, March 27, video game retailer GameStop (NYSE:GME) released fourth-quarter and year-end results for the period ended Feb. 3. Here are the quick-and-dirty details for the quarter.

  • Total sales advanced 38.2%, as same-store sales jumped an impressive 26.5%. During the fourth quarter and entire year, GameStop benefited from the acquisition of archrival EB Games, as well as the next generation of gaming consoles, including Sony's (NYSE:SNE) PlayStation, Microsoft's (NASDAQ:MSFT) Xbox, and Nintendo's surprise-hit Wii.

  • Diluted earnings grew 47.3%, accounted for more than 81% of total 2006 earnings, and demonstrating how important the fourth-quarter selling season is to the company's fortunes.

  • Management expects first-quarter diluted earnings of $0.15-$0.16 per share. It's calling for full-year diluted earnings of $1.37-$1.40, total sales growth of 19%-21%, and comps of 14%-16%.

  • GameStop carries a four-star rating in the Motley Fool CAPS intelligence database. Blockbuster (NYSE:BBI) primarily rents but also sells new and used games, and retailer Amazon (NASDAQ:AMZN) sells games and consoles online. Both carry lowly one-star ratings. Feel free to head to CAPS and offer your own opinion on these and other companies.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$2,303,966

$1,666,914

38.2%

Net Profit

$129,803

$85,015

52.7%

EPS

$0.81

$0.55

47.3%

Diluted Shares

159,832

154,774

3.3%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

24.1%

26.5%

(2.4)

Operating Margin

9.8%

9.2%

0.6

Net Margin

5.6%

5.1%

0.5

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$652,403

$401,593

62.5%

Accounts Rec.

$34,268

$38,738

(11.5%)

Inventory

$675,385

$603,178

12%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$717,868

$543,288

32.1%

Long-Term Debt

$843,311

$941,788

(10.5%)



Learn the ways of the balance sheet.

Cash Flow Highlights
Fools will have to wait until GameStop files its 10-K with the Securities and Exchange Commission for juicy cash flow details. Find out why Fools always follow the money.

Related Foolishness:

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Microsoft is a Motley Fool Inside Value recommendation.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann is long shares of Blockbuster and Microsoft but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.