Video game retailer GameStop Corp. said Wednesday that its first-quarter profit more than doubled, leading it to boost its outlook for full-year 2007. The Grapevine, Texas-based company posted a profit of $24.7 million, compared with $11.7 million a year ago. Revenue jumped 23% year-over-year to $1.3 billion, driven by a 75.1% gain in hardware sales thanks to solid demand for Nintendo Co. Ltd.'s Wii along with Microsoft Corp.'s Xbox 360 and Sony Corp.'s PlayStation 3. GameStop also said its results benefited from demand for games from Nintendo, Sony, Activision Inc., Microsoft and UbiSoft. For the full year, GameStop expects to earn $1.39-$1.42 per share, up from its previous guidance of $1.37-$1.40. However, the stock fell 4.9% on Wednesday to $35.85.
Atari names CFO
Atari Inc. has named Arturo Rodriguez acting CFO, according to a regulatory filing. Rodriguez replaces Bruno Bonnell, who left in April. Bonnell also was founder, chairman and CEO of Atari's France-based parent Infogrames Entertainment SA. Rodriguez so far has served as vp and controller and will keep those positions. He will be CFO until a permanent replacement is named.
Shares of small cable operator Mediacom Communications rose Wednesday and came close to their 52-week high of $9.18 after Miller Tabak + Co. analyst David Joyce upgraded the company's stock from "neutral" to "buy" and boosted his price target $2 to $10.50. "Mediacom is cheapest among (its) peers," the analyst wrote in a report, saying his new price target provides potential appreciation of 17%. Mediacom shares have traded from $5.80-$9.18 during the past year. On Wednesday, they closed up 1% to finish at $9.04 after going as high as $9.12 intraday.