Best Buy: We’ll Be Back
Best Buy (NYSE:BBY) shares were in an uptrend as the company’s quarterly earnings and revenue came in ahead of analysts’ expectations after its turnaround plan gained traction. Lower taxes and a better performance from the company’s U.S. online segment also played a role.
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The good results may also boost the confidence of investors in the company’s future given the unexpected exit of Chief Executive Officer Brian Dunn last month due to alleged personal misconduct.
Net income dropped to $161 million (47 cents a share) from $255 million (64 cents a share) in the previous year. Earnings were 72 cents a share excluding items, decidedly better than the 59 cents a share expected by analysts.
Sales climbed 2.1 percent to $11.61 billion, beating estimates of $11.52 billion.
Interim CEO Mike Mikan said: “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 – we know we have to better adapt to the new realities of the marketplace.”
The company stuck to its outlook for fiscal 2013, anticipating earnings of $3.50 to $3.80 a share, not including restructuring charges.