GameStop Fourth-Quarter Profit Jumps 22%

Shares of GameStop ( GME) were down 2% in early trading after the video game retailer reported its fourth-quarter profit rose 22% to $232.3 million, or $1.39 per share, compared with $189.8 million, or $1.14 per share, in the year-ago period.

The company credited increased video game sales and income from its recent acquisition of French video-game retailer Micromania. The company's new video game software sales rose 22% to $1.48 billion, while used video game product sales climbed 31% to $714.2 million.

Looking ahead, management sees first-quarter earnings of 40 cents to 42 cents per share, slightly above the consensus estimates of 39 cents per share.

Shares of GME are way off all-time highs of $62, hit in December of 2007. The stock has technical support in the $17-$20 price range. If the shares can firm up, we see overhead resistance around the $29-$34 levels. We do not currently rate this non-dividend paying stock, but do follow the company and video-game industry closely.

GameStop does not currently pay a dividend.

Best Buy Shares Jump 12% After Beating Street Estimates

Shares of Best Buy ( BBY) were jumping 12% this morning, despite its profit falling 23% to $570 million, or $1.35 per share, as restructuring charges dragged down results. That compares to $737 million, or $1.71 per share, a year earlier.

Sales rose 10% on the back of strong sales of computers and cell phones, as well as a boost from Best Buy Europe and 213 new store openings within the past year.

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