Best Buy Q1 earnings beat the Street, net income slides 12%
Best Buy Q1 earnings beat the Street, net income slides 12%
Shares of Best Buy stock jumped by as much as 7% Tuesday morning as the company reported results for the first fiscal quarter of 2012 that beat Wall Street’s expectations. In the quarter ending May 28th, Best Buy reported revenue of $10.9 billion, up 1% from the same quarter last year thanks to a 12% increase in online revenue. Gross profit slid 1% year-over-year to $2.77 billion and net income dropped 12% to $136 million, but the Street was expecting more of a hit as competition from online retailers like Amazon picked up. “We’re pleased that our actions improved sales trends within the quarter, with continued double-digit growth online and strong growth of mobile phones and connections,” Best Buy CEO Brian Dunn said in a statement. The company also reaffirmed its fiscal 2012 guidance, saying it expects revenue to fall between $51 billion and $52.5 billion and net income of between $3.30 to $3.55 per share. Analysts expect revenue to total $51.8 billion and EPS to reach $3.46 for the full year. Best Buy’s full press release can be seen below. More →
