GameStop is crashing

GameStop shares plummeted by as much as 18% in pre-market trading on Monday after the company reported disappointing third-quarter results.

In its earnings statement, the video-game retailer said its results were at the low end of its expectations because new software and hardware sales were weaker than anticipated.

New hardware sales tanked 20%, while new software sales dropped 9%.

GameStop posted third-quarter adjusted earnings per share of 54 cents, missing Bloomberg's consensus estimate for 59 cents. Net sales fell 3.6% to at $2.02 billion, missing the forecast for $2.14 billion.

The company maintained its forecast for full-year adjusted earnings per share of between $3.66 and $3.86, with comparable-store growth of 2% to 6%.

Here's a one-year chart of the stock showing the drop in pre-market trading on Monday: