Best Buy: Profit, Revenue Beat Estimates

by Christopher Freeburn | May 22, 2012 9:44 am

Best Buy (NYSE:BBY[1]) posted earnings for the first quarter[2] of $158 million, down 26% from $212 million during the same period last year.

Adjusted EPS for the quarter was 72 cents, which solidly beat analysts who had predicted 59 cents a share, the Associated Press noted. Including restructuring costs, EPS was 46 cents, down from 53 cents last year.

Shares of the retailer rose more than 1% in early Tuesday trading.

The big box electronics retailer reported that revenue rose 2% to $11.61 billion during the quarter, driven by rising sales of tablets and smartphones, which offset sales declines for TVs and laptops.

This also exceeded analysts’ forecast of revenue of $11.5 billion.

Same-store sales fell 5.3%, largely due to soft performance in Europe and China.

The company reiterated its outlook for 2013, predicting adjusted EPS of between $3.50 and $3.80. Analysts forecast $3.60 a share.

The quarterly results come after a tumultuous period for Best Buy, whose former CEO Brian Dunn resigned abruptly in April[3]. That was followed by the resignation of its founder and chairman Richard Schulze, who stepped aside last week after it emerged that he had failed to inform the company’s board[4] after learning of an inappropriate relationship between Dunn and a female employee.

Last month Best Buy announced plans to shed 400 employees, shutter a number of stores and reduce expenses by $800 million.

Endnotes:

  1. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  2. earnings for the first quarter: http://hosted.ap.org/dynamic/stories/U/US_EARNS_BEST_BUY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-05-22-08-02-21
  3. resigned abruptly in April: https://investorplace.com/2012/04/best-buy-new-ceo-brian-dunn-resigns-bby/
  4. failed to inform the company’s board: https://investorplace.com/2012/05/best-buy-chairman-resigns-after-ceo-inquiry/

Source URL: https://investorplace.com/2012/05/best-buy-profit-revenue-beat-estimates/