Best Buy's (BBY) Death Spiral Continues; Q2 Earnings Flop and Guidance Pulled
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Price: $25.64 -4.36%
EPS Growth %: -59.7%
Financial Fact:
Cost of goods sold: 8.17B
Today's EPS Names:
CSS, STV, GIGM, More
EPS Growth %: -59.7%
Financial Fact:
Cost of goods sold: 8.17B
Today's EPS Names:
CSS, STV, GIGM, More
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The body blows just keep coming for Best Buy (NYSE: BBY) and investors are simply dumbfounded by the lack of visibility and direction at the once mighty electronics retailer.
This morning the company reported second quarter results that were well below expectations and pulled its financial guidance and share buyback plan.
Second quarter revenues fell 3 percent to $10.547 billion, versus $10.856 billion last year and the consensus of $10.63 billion.
Adjusted earnings per share were $0.20, down 49 percent from the $0.39 reported last year and well below the consensus of $0.31.
Today's weak results follows news yesterday that the company named turnaround expert Hubert Joly as its new President and Chief Executive Officer and a member of its Board of Directors. He is expected to begin his new role in early September.
Adding insult to injury, the company reduced its annual earnings expectations, citing lowered expectations for industry wide sales and the uncertainty associated with several key product launches. Given this and the new CEO the company does not intend to further provide or update earnings guidance for fiscal 2013.
Best Buy continues to expect to achieve its domestic market share goals for the fiscal year and expects to generate free cash flow in the range of $1.25 billion to $1.5 billion for fiscal 2013.
The company has suspended its share repurchases for fiscal 2013 as it goes through the transition to a new CEO.
The dismal results and guidance also comes as the company is fending off an attempt by founder Richard Schulze to take the company private, although many question the wherewithal of Mr. Schulze ability to pull off a deal.
Shares of Best Buy last traded at $16.43, down 9.5 percent.
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This morning the company reported second quarter results that were well below expectations and pulled its financial guidance and share buyback plan.
Second quarter revenues fell 3 percent to $10.547 billion, versus $10.856 billion last year and the consensus of $10.63 billion.
Adjusted earnings per share were $0.20, down 49 percent from the $0.39 reported last year and well below the consensus of $0.31.
Today's weak results follows news yesterday that the company named turnaround expert Hubert Joly as its new President and Chief Executive Officer and a member of its Board of Directors. He is expected to begin his new role in early September.
Adding insult to injury, the company reduced its annual earnings expectations, citing lowered expectations for industry wide sales and the uncertainty associated with several key product launches. Given this and the new CEO the company does not intend to further provide or update earnings guidance for fiscal 2013.
Best Buy continues to expect to achieve its domestic market share goals for the fiscal year and expects to generate free cash flow in the range of $1.25 billion to $1.5 billion for fiscal 2013.
The company has suspended its share repurchases for fiscal 2013 as it goes through the transition to a new CEO.
The dismal results and guidance also comes as the company is fending off an attempt by founder Richard Schulze to take the company private, although many question the wherewithal of Mr. Schulze ability to pull off a deal.
Shares of Best Buy last traded at $16.43, down 9.5 percent.
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