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.
Looking ahead, the electronics retailing giant now expects a 2010 profit of between $2.50 and $2.90 per share, on revenue of $46.5 billion to $48.5 billion. We removed shares of BBY from our "Recommended" list on Sept.17, when the stock was trading at $42.40. The company has a dividend yield of 1.67%, based on Friday's closing stock price of $33.46. The stock has technical support in the $28-$30 level. If the shares can hold today's momentum, we see overhead resistance around the $37-$40. We are close to putting this on our "aggressive" recommended list. Best Buy is not recommended at this time, holding a Dividend.com rating of 3.3 out of 5 stars. Raytheon Lifts Dividend Payout 11% Shares of Raytheon ( RTN) were up 4% in early trading, following the company's announcement that its Board of Directors has voted to increase the Company's annual dividend payout rate by 11% from $1.12 to $1.24 per share. The Board also authorized payment of a quarterly cash dividend of 31 cents per outstanding share of common stock to be paid on May 1, 2009 to shareholders of record as of the close of business on April 7, 2009. We have avoided share of RTN since our early June coverage began, when the stock was trading at $59.99. The company will now have a dividend yield of 3.33%, based on the new higher payout and last night's closing stock price of $37.23. The stock has technical support in the $27-$30 price range. If the shares can firm up here, we see overhead resistance around the $43-$45 price area. We would remain on the sidelines for now.
Raytheon is not recommended at this time, holding a Dividend.com rating of 3.2 out of 5 stars. Dr. Pepper Snapple Group Shares Up Despite Loss of $621 Million Shares of Dr. Pepper Snapple Group ( DPS) were up nearly 8% in early trading, despite the beverage maker's fourth-quarter loss of $621 million or $2.44 per share, compared to a profit of $138 million, or 54 cents per share, a year earlier. The company said sales slipped $1.38 billion from $1.39 billion. The results were hurt by a spending increase on restructuring and severance. Looking ahead, management expects 2009 EPS of $1.59 to $1.67 per share. Shares of DPS are off all-time highs of $26 hit in September of 2008. The stock has technical support near all-time lows of $12. If the shares can firm up here, we see overhead resistance around the $19 price mark. We do not currently rate this non-dividend paying stock at this time, but do follow the company closely. Dr. Pepper Snapple Group does not currently pay a dividend.