Commerce Capital raised its estimate on Electronics Boutique (ELBO).
Analyst Richard Zimmerman says fourth quarter earnings per share beat his $1.10 estimate and consensus estimate of $1.11. He ties the outperformance to improved gross margins, better-than-expected selling, general, and administrative costs, and a lower tax rate vs. last year. Zimmerman feels confident that Electronics Boutique can continue to grow market share through its strong appeal to core gaming consumers as well as through domestic and international expansion of its store base.
He raised the $1.70 fiscal 2004 (Jan.) earnings per share estimate to $1.75, and sees $2.00 for fiscal 2005. He reiterates his market outperform rating.