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Best Buy Shares Tumble on Q4 Results (BBY)

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Best Buy CoShares of Best Buy Co. Inc. (NYSE: BBY), a multinational retailer of consumer electronics, home office products, entertainment products, appliances and related services, plunged on Thursday after the company reported its fourth-quarter financial results.

BBY reported weaker than expected sales for the fourth quarter and said it would shut down 50 large U.S. stores and layoff another 400 employees. Investors, however, were looking for deeper cuts from the company.


Best Buy shares ended 6.95% lower at $24.77 on Thursday.

Analysts expected the company to announce more store closures as they believe that the retailer needs to close more stores to reduce costs at a time when consumers are increasingly buying electronics items online.

Anthony Chukumba, BB&T Capital Markets analyst, said that these are steps in the right direction. He said that the company should try to relocate more stores to smaller locations, sub-lease portions of its bigger stores and shutter more unprofitable stores.

For the fourth quarter, Best Buy reported sales of $16.63 billion, well short of Street estimates of $17.23 billion. The company reported a loss of $1.7 billion, or $4.89 per share for the quarter, compared with a net income of $651 million, or $1.62 per share reported for the same period in the previous year. Excluding one-time items, the company reported a profit of $2.47 per share, above Street estimates of $2.16 per share.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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