GameStop 1Q profit, sales beat expectations

For the three months ended May 3, the Grapevine, Texas-based company earned $62.1 million, or 37 cents per share, up from $24.7 million, or 15 cents per share, in the same period a year earlier.

Revenue jumped 42 percent to $1.81 billion from $1.28 billion.

Analysts, on average, expected a profit of 35 cents per share on sales of $1.72 billion, according to a poll by Thomson Financial.

GameStop's results came at an upbeat time in the video-game industry, which is thriving even as people are cutting back on discretionary spending. GameStop said the installed base of video game consoles grew 34 percent, or 31 million units, in 2007 -the highest incremental growth in the history of the business.

The company also boosted its full-year guidance.