Best Buy Earnings: Here’s Why Investors are BUMMED and Shares Are Crashing
S&P 500 (NYSE:SPY) component Best Buy Co. (NYSE:BBY) reported its results for the second quarter. Best Buy is a retailer that sells appliances, consumer electronics, home office products, and software.
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Best Buy Co. Earnings Cheat Sheet
Results: Net income for Best Buy Co. fell to $12 million (4 cents per share) vs. $128 million (34 cents per share) a year earlier. This is a decline of 90.6% from the year-earlier quarter.
Revenue: Fell 2.8% to $10.55 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Best Buy Co. reported adjusted net income of 20 cents per share. By that measure, the company fell short of mean estimate of 32 cents per share. It fell short of the average revenue estimate of $10.65 billion.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 14 cents, and in the fourth quarter of the last fiscal year, it was ahead by 34 cents.
Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 52 cents per share to 49 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year has seen a bump from $3.59 per share sixty days ago to $3.62.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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