Best Buy Co. Earnings: Two Straight Quarters of Profit Broken by a Loss

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

S&P 500 (NYSE:SPY) component Best Buy Co. (NYSE:BBY) reported its results for the fourth quarter. Best Buy is a retailer that sells appliances, consumer electronics, home office products, and software.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Best Buy Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $1.7 billion ($4.89 per diluted share) in the quarter. The electronics store had net income of $651 million or $1.62 per share in the year-earlier quarter.

Revenue: Rose 3.4% to $16.63 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Best Buy Co. reported adjusted net income of $2.47 per share. By that measure, the company beat the mean estimate of $2.16 per share. It fell short of the average revenue estimate of $17.22 billion.

Quoting Management: “In order to help make technology work for every one of our customers and transform our business as the consumer electronics industry continues to evolve, we are taking major actions to improve our operating performance,” said Brian J. Dunn, CEO of Best Buy.

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the third quarter, it missed the mark by 4 cents, and in the second quarter, it came in under estimates by 6 cents.

After three consecutive quarters of profits, the company declared a loss in the latest quarter. The company reported a profit of $154 million in the third quarter, a profit of $177 million in the second quarter and $136 million in the first.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 44 cents a share to 45 cents over the last seven days. For the fiscal year, the average estimate has moved down from $3.40 a share to $3.37 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Will Monetary Policy and Inflation Continue to Support Gold?

America’s Big Appetite is Good for These Restaurant Stocks

Here’s How ‘Hunger Games’ Blew Everyone Out of the Water

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

More Articles About:
Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business