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Best Buy: Profit, Revenue Beat Estimates

Earnings fall on restructuring charges, overseas sales weak


Best Buy (NYSE:BBY) posted earnings for the first quarter 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.

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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. 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 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.

Article printed from InvestorPlace Media,

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