(GSIC) - Analysts expect earnings growth to grow 108% this year and jump to 169% next year

GSI Commerce, Inc. is expecting earnings growth to accelerate. Analysts expect earnings growth to grow 108% this year and jump to 169% next year. Earnings estimates have been on the rise as well. Over the past 60 days, this year's estimates have risen 6.3%, while next year's numbers have increased 12.5%. Three analysts have increased their estimates for this year, while four have done so for next year. Full Analysis GSI Commerce, Inc. (GSIC) and its subsidiaries provide e-commerce solutions that enable retailers, branded manufacturers, entertainment companies, and professional sports organizations to operate e-commerce businesses. The company, through its integrated e-commerce platform, provides Web site administration, Web infrastructure and hosting, business intelligence, an e-commerce engine, and order management; fulfillment, drop shipping, customer service, and buying; and creative design, Web site usability, testing and enhancements, channel integration, business-to-business, content development and imaging, e-commerce strategy, online marketing, and customer relationship management services. The company reported a better-than-expected first-quarter earnings release. GSIC lost seven cents per share, 12.5% ahead of the consensus estimate. Merchandise sales were $191.0 million in the first quarter of fiscal 2006, a 40 percent increase compared to $136.2 million in the same period in fiscal 2005. Gross margin was 41.3 percent in the first quarter of fiscal 2006, an increase of 430 basis points from 37.0 percent in the same period in 2005. "We are off to a strong start to the year with net revenue, merchandise sales and adjusted EBITDA all above our expectations," said Michael G. Rubin, chairman and CEO of GSI Commerce. Based on the momentum of our business, including a strong business development pipeline, we are increasing our level of investment spending while we believe we remain on track to achieve our profitability goals for the year of increasing net income between 85 percent and 178 percent and increasing adjusted EBITDA between 54 percent and 69 percent," said Rubin. Earnings growth is expected to accelerate meaningfully this year and next. Analysts expect earnings growth to grow 108% this year and jump to 169% next year. Earnings estimates have been on the rise as well. Over the past 60 days, this year's estimates have risen 6.3%, while next year's numbers have increased 12.5%. Three analysts have increased their estimates for this year, while four have done so for next year. The stock is currently trading at 29.6x next year's estimates of 45 cents per share, well below the long-term growth rate of 39.25%, giving the stock a PEG ratio of 0.75. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home