GSI Commerce, Inc. (GSIC) continues to trade near its 52-week high at $26.10 ahead of the company’s Feb 10, Q4 results. In the meantime, estimates continue to rise, with the next-year estimate up 10 cents in the last 2 months to 26 cents per share, which would represent a return to profitability for the company.

Company Description

GSI Commerce, Inc. provides e-commerce and interactive marketing services to consumer oriented business in the United States and internationally. The company was founded in 1986 and has a market cap of $1.28 billion.

Third-Quarter Results

If last quarter is any indication, GSI shareholders should be pleased with the company’s upcoming results. Sales were up 2% from last year to $190.3 million. Earnings came in ahead of the mark at a loss of 12 cents, 19 cents ahead of the Zacks Consensus Estimate.

Non-GAAP income from operations improved to $12.1 million from $5.8 million last year, while cash flow from operation over the last 12 months totaled $90 million, up from $52 million in the previous period.

CEO Michael Rubin was optimistic on the company’s outlook, saying, “Our pace of new business wins remains strong with four new e-commerce services deals signed for North America and one for international since our second quarter earnings release.”

Estimates

Estimates have ticked higher over the last few months, with the current year adding 5 cents to a loss of 6 cents. The next-year estimate is up 10 cents in the same time to 26 cents per share.

The Chart

Shares of GSIC recently pulled back from the 52-week high at $26.10 but still remain in elevated territory. A long-term trend line should provide more support at $21 on additional weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

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