Specialty retailer GameStop is spiraling rapidly lower this morning; in fewer than 30 minutes of trading, the equity has given up nearly 8%. Interestingly enough, the company visited the earnings confessional this morning to report that third-quarter net income more than tripled at $52 million, or 31 cents per share (from $13.6 million, 9 cents per share, the previous year). Revenue jumped 59% while same-store sales rose 46%.

But the proverbial rub was in the fourth-quarter outlook. GME expects per-share earnings of 95 to 97 cents, with a 7% to 9% jump in same-store sales. Analysts were a little more optimistic, expecting per-share results of $1.01 per share.

As Jon C. Ogg noted over at 247wallst.com in his posting about GameStop earnings: There is a single message here that we are using for conjecture: 'We smoked earnings, but this strength cannot last because there are only so many Wii and Xbox system launches that can take the industry by force, and there are only so many Halo 3 and Madden NFL releases.'

Ogg continues to hypothesize that the stock may see a sell on the news reaction and warns that 2008 numbers are at risk of paling in comparison to 2007 due to the lighter launch schedule.

For now, the equity is holding precariously at its 20-week moving average, which has not been violated on a weekly closing basis since mid-March.