GameStop Corp. (GME) shares soared 5.64% in the after-hours trading session on Tuesday, following the release of the company's third-quarter earnings report. Despite missing revenue expectations, the video game retailer managed to swing to a surprise profit, fueling optimism among retail traders for another potential meme stock rally.

For the fiscal third quarter ended November 2, GameStop reported net income of $17.4 million, or $0.04 per share, compared to a net loss of $3.1 million in the same period last year. Adjusted earnings per share came in at $0.06, beating analysts' expectations of a $0.03 loss. However, net sales declined 20% year-over-year to $860.3 million, missing the consensus estimate of $887.7 million.

The company attributed the profit to lower selling, general, and administrative expenses, which fell to $282 million from $296.5 million a year ago. Additionally, GameStop completed an at-the-market equity offering during the quarter, raising approximately $400 million in gross proceeds. The company stated that it does not anticipate any further equity offerings during the current fiscal year.