GSI Commerce announced first quarter 2008 losses of $9.6MM or 20 cents per share, which was less than the consensus analyst estimate of a 24 cent loss per share.
Analysts from Jefferies Group downgraded GSI's shares at the end of this week; online retailers are engaging in more promotional and sale activities this holiday season than expected due to weak conditions in the retail industry, which analysts believe could crowd out some of GSI's profit.
GSI Commerce and the National Hockey League agreed to extend their partnership through 2014. GSI is contracted to provide the NHL with a complete integrated e-commerce solutions package, including online sales distribution and Internet marketing services.
Jefferies & Co. expects GSI Commerce’s EBITDA margin to increase over the period of next 1-2 years; the company is also doing well in the e-commerce market. As a result, Jefferies & Co. upgraded its ratings from ‘Hold’ to ‘Buy’ and the stock price also increased.