Best Buy Shares down 10% After Q3 Call
Best Buy Co (NYSE:BBY) shares are falling hard today and hit $40.96 after reporting a great Q3 but lacking guidance. Going forward Best Buy is going to feel the pinch of slimmer profit margins.
Net income for the third quarter rose to $227 million, or 53 cents per share, from $52 million, or 13 cents per share, last year when it wrote down the value of its U.K. retailer Carphone Warehouse.
Analysts polled by Thomson Reuters, on average, predicted a profit of 43 cents per share. Revenue rose 5 percent to $12.02 billion, while analysts predicted $11.98 billion.
The Minneapolis company now expects yearly revenue of $49 billion to $49.5 billion, up from previous guidance of $48 billion to $49 billion. It expects profit of $2.94 to $3.09 per share, or $3.00 to $3.15 per share excluding one-time items.
The results are decent but not good enough for the Street, thus today's 10% decline in share price: