Best Buy shares rise on earnings beat, even as CEO says shoppers are showing ‘recessionary behaviors’

Earnings

In this article

Televisions are seen for sale at a Best Buy store in New York City.
Andrew Kelly | Reuters

Best Buy on Thursday topped Wall Street’s quarterly earnings expectations, but its sales missed estimates and it reiterated expectations for weaker spending on consumer electronics this year

The retailer affirmed the outlook it shared in March. It expects full-year revenue of between $43.8 billion and $45.2 billion, a decline from its most recent fiscal year, and a comparable sales decline of between 3% and 6%.

Shares rose more than 4% in premarket trading.

Here’s how the company did for the three-month period that ended April 29, compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.15 adjusted vs. $1.11 expected
  • Revenue: $9.47 billion vs. $9.52 billion expected

Best Buy’s net income in the first quarter fell to $244 million, or $1.11 per share, from $341 million, or $1.49 per share, a year earlier.

Net sales declined from $10.65 billion in the year-ago period and fell short of Wall Street’s expectations.

Shares of Best Buy closed Wednesday at $69.15, bringing the company’s market value to $15.12 billion. So far this year, its stock is down about 14%, trailing the 7% gains of the S&P 500 and the 2% declines of the retail-focused XRT during the same period.

This is breaking news. Please check back for updates.

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *