GameStop Corporation (GME) the biggest video game retailer, reported third quarter earnings of 32 cents per share, slightly above the Zacks Consensus Estimate of 31 cents. The reported earnings were 6% lower than prior-year quarter. Revenue for the quarter increased 8.2% to $1,834.7 million compared to $1,695.7 million reported in the year-ago quarter. The company’s top-line benefited from strong new title releases and price cuts on all current generation platforms. While new software sales grew 9.4%, used product sales increased 19.4% during the quarter. However, comparable store sales dropped 7.8% due to a decline in new video game hardware sales. New video game hardware sales fell 2%. The company opened 86 stores during the quarter, including 48 in the U.S. Gross margin increased 60 basis points year-over-year to 28.5% in the reported quarter. The margin improvement was a result of product mix shift from low-margin ...

This morning, Pozen (POZN) initiated phase III studies on PA-325/40, a fixed-dose combination of 325mg enteric coated aspirin and 40mg of immediate release omeprazole. The phase III program will consist of two pivotal trials conducted under a Special Protocol Assessment (SPA) agreed upon with the U.S. FDA, and one long-term safety study. The two pivotal programs will enroll approximately 500 patients per study at over 100 sites around the U.S. The primary endpoint of the pivotal studies is the cumulative incidence of gastric ulcers over the six-month treatment period for PA32540 versus 325 mg of enteric-coated aspirin. The long-term study will enroll approximately 400 patients and assess safety over a period of one year. Pozen is developing PA-325/40 for use in the secondary prevention of heart attacks and strokes in patients at risk for associated gastric ulcers. Aspirin is the No. 1 recommended agent for at-risk ...

Cyberonics, Inc. (CYBX) reported second quarter fiscal 2010 earnings per share of 32 cents, beating the Zacks Consensus Estimate of 20 cents and the year-ago earnings of 14 cents.   Sales Net sales in the reported quarter increased 13.0% year over year to $40.7 million. Of this, net product sales in the domestic market increased 15.1% year over year to $33.5 million. Growth was due to higher average selling prices (ASPs) and sales volume. ASPs and sales volume increased 10.0% and 5.1% year over year, respectively.   International sales increased 4.3% year over year to $6.8 million. Growth can be attributed to higher sales volume made through distributors, which was partly offset by lower ASPs. Licensing revenues constituted the remaining $0.4 million. Margins Gross margin increased 180 basis points (bps) year over year to 87.4%. Growth can be primarily attributed to higher sales volume, greater manufacturing efficiencies ...

TransDigm Group Incorporated (TDG) reported fourth quarter 2009 earnings per share of 82 cents, beating the Zacks Consensus Estimate of 80 cents. Net sales for the quarter rose 4.3% to $197.4 million from $189.2 million in the comparable year-ago quarter. The favorable contribution from acquisitions was partially offset by a 4.6% decline in organic net sales.  The decrease in organic sales was primarily due to lower commercial OEM and aftermarket demand partially offset by strong defense sales. The company completed the acquisition of three proprietary aerospace component businesses and ended the fiscal year in sound financial condition with nearly $190 million in cash and almost $200 million of unutilized capacity under its revolving credit facility.  For 2010, in the Commercial OEM segment, the company is assuming a revenue decline in the mid-single digit percent range. This is based on a reduction in commercial transport rates in ...

Suntech Power Holdings Company Ltd. (STP) posted strong third quarter results of 16 cents, double the Zacks Consensus Earnings per American Depository Share (EPADS) estimate of 8 cents. However, the company fell short of the year-ago EPADS of 33 cents by 17 cents.  Suntech registered total net revenues of $473.1 million in the reported quarter, an increase of 47.4% from $321 million in the previous quarter. Operating expenses were $39.3 million compared to $38.6 million in the previous quarter. Operating expenses included a net $3.5 million reversal of bad debt provision. Income from operations was $44.8 million compared to $21.1 million in the prior quarter.  Gross margin for the core wafer to module business was 20% in the reported quarter, compared with 19.1% in the preceding quarter. Overall consolidated gross profit was $84.1 million and gross margin was 17.8% in the reported quarter compared to consolidated ...

After almost a year of initiating the $700 billion Troubled Asset Relief Program (TARP) to rescue the nation’s financial industry, the U.S. Treasury Department said on Thursday that it would auction off stock warrants it acquired from three big banks that received a significant portion of taxpayers’ money and have fully repaid the same. The government is taking this step to free the lenders from the federal bailout program.  The three banks, whose warrants will be sold via auctions over the next month, are JPMorgan Chase (JPM), Capital One Financial (COF) and TCF Financial Corporation (TCB). These three banks, that received a total of $28.9 billion from the TARP, have fully repurchased Treasury's preferred stock investment. The current move to sell their warrants will completely free these banks from government intervention.  The government still holds warrants of 261 banks, out of which only 15 ...

U.S. stocks tumbled Thursday as concerns about a subdued economic recovery played in the minds of investors.  Safer bets like dollar strengthened and oil prices slumped.  As investors turned to safe havens, Treasury prices rose, sending corresponding yields lower.  Yields on three-month bills, considered one of the safest bets, turned negative for the first time since December.  A Bank of America Merrill Lynch downgrade of semiconductor industry also added to the downward pressure.     

The spike in bond prices came even as the Treasury announced plans to auction a record $118 billion in new notes next week – an auction schedule of $44 billion 2-year notes on Monday, $42 billion 5-year notes Tuesday, and $32 billion 7-year notes on Wednesday.

The Dow, which had plunged as much as 170 points during the session, ended down 93.87 points, or 0.9%, to 10,332.44.  The broader Standard & Poor's 500 index fell 14.90

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Gap Inc. (GPS), a premier international specialty retailer, has reported healthy third quarter results despite challenging market conditions. The company reported net income of $307 million or 44 cents per share during the quarter compared to $246 million or 35 cents per share in the year-earlier quarter.  The robust earnings were primarily driven by strong sales at its low-price Old Navy segment and the highest third quarter operating margins in a decade. Net sales during the quarter were $3.59 billion compared to $3.56 billion in the year-ago quarter, largely due to a 10% increase in comparable sales across 1,060 Old Navy stores that account for about 40% of the total sales.  The Old Navy chain has benefited from the increasing preference among U.S. shoppers for lower-price and discount stores due to the continued challenging macroeconomic environment. Gross margins increased 380 basis points year-over-year to 42.5%. Operating ...

Dell Inc. (DELL) reported third quarter 2010 EPS of 23 cents, below the Zacks Consensus Estimate of 27 cents. Revenue Revenue for the quarter was $10.75 billion, down 17.0% from $12.97 billion reported in the year-ago quarter and up 1.0% from $10.62 billion reported in the previous quarter. The company’s third quarter reported revenue was adversely affected by the timing of the Windows 7 launch and due to backlog buildup in the company’s SMB and consumer businesses. Revenue by Segment Large Enterprise posted revenue of $3.4 billion, an increase of 4.0% sequentially and decline of 23.0% year-over-year. In the last quarter, the company expended its networking partnership with Brocade and Juniper, and introduced products like PowerEdge 11g servers and expanded PowerVault storage systems. Public revenue for the quarter was $3.7 billion, down 3.0% on sequentially and 7.0% from the year-ago quarter. Shipments were ...

For Immediate Release

Chicago, IL – November 20, 2009 – Zacks Equity Research highlights Principal Financial (PFG) as the Bull of the Day and Sohu.com (SOHU) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Bank of America (BAC), Wal-Mart (WMT) and Sears Holding Corp.(SHLD).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

We are upgrading our recommendation on the shares of Principal Financial (PFG) to Outperform. The company's third quarter operating earnings were much ahead of the Zacks Consensus Estimate, driven primarily by the sequential improvement in domestic as well as global equity markets.

We believe that Principal's strong franchise within the pension sector, which is aided by its diversification both in terms of products and geography, positions it well to benefit

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