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Best Buy shares plunge after Q3 sales disappoint

Published 19/11/2015, 11:18 pm
© Reuters.  Best Buy shares plunge in pre-market trade after weak Q3 sales
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Investing.com - U.S. electronics retailer Best Buy (N:BBY) saw shares fall sharply in pre-market trade on Thursday, after the company reported lower than expected third quarter revenue.

Best Buy said revenue totaled $8.82 billion for the quarter ended October 31, missing forecasts for revenue of $8.86 billion and down 2.3% from sales of $9.03 billion in the same period a year earlier.

Adjusted earnings per share came in at 41 cents, beating expectations for adjusted earnings of 36 cents per share.

Comparable sales, excluding the impact of installment billing, increased 0.5%, below forecasts for a gain of 1.5%.

Comparable-store sales fell 2.0% on continued weakness in the consumer electronics category.

Hubert Joly, Best Buy chairman and CEO, commented, "We have delivered another quarter of Domestic comparable sales growth and operating income expansion."

Following the release of the report, Best Buy shares tumbled as much as 11% before paring losses to 8.3% to trade at $28.73 in pre-market trade from a closing price of $31.34 on Wednesday.

Meanwhile, the outlook for U.S. equity markets was modestly upbeat. The Dow futures pointed to a gain of 38 points, or 0.21%, at the open, the S&P 500 futures indicated a rise 8 points, or 0.37%, while the Nasdaq 100 futures increased 19 points, or 0.39%.

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