Can Evidence of a Turnaround Be Found in Best Buy’s Q4 Results?
Just as analysts at Stifel Nicolaus and Barclays Capital indicated with the investment upgrades they gave Best Buy (NYSE:BBY) on February 19, the fortunes of the electronics retailer seem to be improving. And it’s not only analysts that have faith in the company’s resurrection. Investors have bid up the company’s shares to gains of 46 percent on the stock chart this year to date. Its stock has outperformed all others on Standard & Poor’s 500 Index except Netflix (NASDAQ:NFLX) since the beginning of January.
The company failed to receive a buyout offer from its founder, largest shareholder, and former chairman Richard Schulze by Thursday’s deadline, but that leaves Chief Executive Officer Hubert Joly to focus on revamping the company’s strategy and putting its turnaround — that was evidenced in Best Buy’s fiscal fourth quarter results — into high gear.
Best Buy reported fourth-quarter and fiscal year results after the bell on Thursday that beat analysts’ expectations, at least on an adjusted-profit basis. For the quarter ended February 2, profit amounted to $1.64 per share — above the expectations for $1.55 per share held by analysts polled by Bloomberg. The company’s results did show signs that the electronics retailer is still struggling — it posted a net loss for the three-month period — but that loss shrank to $409 million, or $1.21 per share, from $1.82 billion, or $5.17 per share, in the year-ago quarter…