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Analyst Bullish on Blockbuster

8 May, 2008 By: Erik Gruenwedel

Heading into Blockbuster Inc.'s earnings call May 15, an analyst with Utendahl Capital Partners said the No. 1 DVD rental company expects to report net income of $30 million and earnings (before interest, taxes, depreciation and amortization) of $110 million.

Analyst Alden Mahabir, in a research note, said he was “encouraged” by the projection since he said it showed the operational strategy implemented by CEO Jim Keyes “seems to be working.”

Mahabir said his kudos did not apply to Blockbuster's announced attempt to acquire Circuit City Stores Inc.

Dallas-based Blockbuster had net income of $40 million in the fourth quarter — a result that left CNBC market analyst Jim Cramer declaring that “Blockbuster is Back.”

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