Best Buy (BBY) Shares Turn Lower Amid Q2 Miss, Lowered FY12 EPS Expectations
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Price: $85.89 +0.19%
Revenue Growth %: +1.1%
Financial Fact:
Basic (in shares): -642.1M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Revenue Growth %: +1.1%
Financial Fact:
Basic (in shares): -642.1M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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After much volatility during Tuesday's pre-market trading session, Best Buy (NYSE: BBY) shares have just opened sharply lower. The electronic retailer posted second-quarter results this morning.
Revenue for Best Buy was just about flat at $11.347 billion, from $11.339 billion in the same period last year. Comparable-store sales fell 2.8 percent.
Net income slumped 30 percent, dropping from $254 million to $177 million, or 47 cents per diluted share.
Results were lighter than expectations, revenue was expected to be $11.52 billion and earnings about 53 cents per share.
Notably, domestic revenue ebbed about 1.5 percent to $8.311 billion, while Best Buy's International segment saw revenue increase 4.6 percent to $3.036 billion in the quarter.
Computing & Mobile phones accounted for a larger portion of overall revenue in the U.S., increasing about 3 points to 42 percent. Best Buy's Entertainment and Consumer Electronics categories both showed a decrease in contributions.
"While results in the second quarter and our outlook reflect continued macro challenges to overall consumer spending and lower consumer electronics industry sales, we have made good progress on our key strategic focus areas in this environment," CEO Brian Dunn commented. "Looking forward to the important holiday season, I believe Best Buy is well positioned to bring the benefits of our multi-channel model to our customers and shareholders."
Looking ahead, Best Buy sees fiscal 2012 earnings of $3.10 to $3.40 per share, the worst-case outlook after excluding impact from stock buybacks, which is shy of the $3.48 consensus. Best Buy sees fiscal 2012 impact of 20 cents to 25 cents per share from buybacks. The number is down from the previous expectation calling for a range of $3.30 to $3.55. Revenue for the year should fall within a range of $51.0 billion to $52.5 billion, comfortably around the Street's $52.17 billion expectation. Comps are expected to be flat to down 3 percent.
Best Buy shares are down 3.8 percent to around $23.97 early Tuesday.
Revenue for Best Buy was just about flat at $11.347 billion, from $11.339 billion in the same period last year. Comparable-store sales fell 2.8 percent.
Net income slumped 30 percent, dropping from $254 million to $177 million, or 47 cents per diluted share.
Results were lighter than expectations, revenue was expected to be $11.52 billion and earnings about 53 cents per share.
Notably, domestic revenue ebbed about 1.5 percent to $8.311 billion, while Best Buy's International segment saw revenue increase 4.6 percent to $3.036 billion in the quarter.
Computing & Mobile phones accounted for a larger portion of overall revenue in the U.S., increasing about 3 points to 42 percent. Best Buy's Entertainment and Consumer Electronics categories both showed a decrease in contributions.
"While results in the second quarter and our outlook reflect continued macro challenges to overall consumer spending and lower consumer electronics industry sales, we have made good progress on our key strategic focus areas in this environment," CEO Brian Dunn commented. "Looking forward to the important holiday season, I believe Best Buy is well positioned to bring the benefits of our multi-channel model to our customers and shareholders."
Looking ahead, Best Buy sees fiscal 2012 earnings of $3.10 to $3.40 per share, the worst-case outlook after excluding impact from stock buybacks, which is shy of the $3.48 consensus. Best Buy sees fiscal 2012 impact of 20 cents to 25 cents per share from buybacks. The number is down from the previous expectation calling for a range of $3.30 to $3.55. Revenue for the year should fall within a range of $51.0 billion to $52.5 billion, comfortably around the Street's $52.17 billion expectation. Comps are expected to be flat to down 3 percent.
Best Buy shares are down 3.8 percent to around $23.97 early Tuesday.
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