Best Buy Shares Bounce Back
Best Buy Inc. (NYSE:BBY) shares bounced 4.5% today and appear to be on the mend after almost touching a new 12 month low this past week.
Today Best Buy reported net income fell 12% to $136 million, or 35 cents per share, compared with $155 million, or 36 cents per share, last year. That bested consensus estimates by 2 cents, according to analysts polled by FactSet.
Revenue rose to $10.9 billion, edging out most Wall Street revenue expectations as well. Revenue in stores open at least one year fell 1.7%. That figure is a key gauge of a retailer's financial health because it excludes the volatility of stores that open or close during the year.
Yet even as industry analysts lauded the nation's largest specialty electronics store for its ability to keep costs down and maintain its financial outlook, they also see a threat to margins going forward, with consumers increasingly heading online or to discount stores for the best deals
Bottom line: The worst may be over for Best Buy shareholders. It will be difficult for the company to return to greatness due to online competition but it could be a slow tick higher from this point forward.