S&P 500 (NYSE:SPY) component Best Buy Co. (NYSE:BBY) reported its results for the first quarter. Best Buy is a retailer that sells appliances, consumer electronics, home office products, and software.
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Best Buy Earnings Cheat Sheet for the First Quarter
Results: Net income for Best Buy Co. fell to $262 million (47 cents per share) vs. $460 million (35 cents per share) a year earlier. This is a decline of 43% from the year-earlier quarter.
Revenue: Rose 2.1% to $11.61 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Best Buy Co. reported adjusted net income of 72 cents per share. By that measure, the company beat the mean estimate of 59 cents per share.
Quoting Management: “Best Buy is in a turnaround, and the strategic priorities we laid out at the beginning of the year are just the first phase of the changes to come,” said Mike Mikan, CEO (interim) of Best Buy. “We know we have to better adapt to the new realities of the marketplace, and we are creating a long-term plan designed to make Best Buy more relevant with customers and position the company for sustained, profitable returns in the years ahead. First quarter results were in-line with our expectations, and we are reaffirming our previously provided annual guidance for fiscal 2013.”
The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of $2.50 versus a mean estimate of net income of $2.16 per share.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for second quarter has fallen from 53 cents per share to 36 cents. For the fiscal year, the average estimate has moved down from $3.70 a share to $3.60 over the last ninety days.
Competitors to Watch: CONN’S, Inc., RadioShack Corporation, hhgregg, Inc., GameStop Corp., Apple Inc., Circuit City Stores Inc, The Carphone Warehouse Group PLC, Funtalk China Hldgs. Ltd., Kesa Electricals plc, and Globex Utilidades SA.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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