Best Buy Co Inc (NYSE:BBY) early Thursday posted mixed third quarter earnings results and offered a weak profit outlook for the all-important holiday quarter, sending its shares plunging in premarket trading.
The Richfield, MN-based electronics retailer reported Q3 earnings per share (EPS) of $0.78, which was in-line with the Wall Street consensus estimate of $0.78.
Revenues rose 4.2% from last year to $9.32 billion, falling just short of analysts’ view for $9.36 billion.
Domestic online revenue of $1.1 billion jumped 22.3% in the latest period, while the percentage of total revenue derived from online sales gained 190 basis points to 12.7% from 10.8% last year.
Looking ahead, BBY forecast Q4 EPS of $1.89 to $1.99, well below the $2.03 per share that analysts are looking for. It also sees Q4 revenues of $14.2 to $14.5 billion, in-line with Wall Street’s $14.36 consensus estimate.
The company commented via press release:
“[W]e are very excited about our plans for holiday, including a curated assortment of great new technology products, free shipping with no minimums, and a range of new capabilities such as our new in-home advisor program, an updated gift center, and same-day delivery in 40 cities. We believe we are well positioned for a successful season and therefore, we are raising our financial outlook for the fourth quarter and for the year. I would like to thank all of our associates for their work this last quarter, and for what they will do this holiday season.”
Best Buy shares fell 4% in premarket trading Thursday following the report. Year-to-date, BBY has gained 36.90%, versus a 16.36% rise in the benchmark S&P 500 index during the same period.
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