Best Buy shares tumble 8 percent as revenue, outlook fall short

Best Buy shares tumble 8 percent as revenue, outlook fall short

Other consumer-electronics and appliance sales increased. Analysts polled by Thomson Reuters had projected revenue to be $13.62 billion. Net income climbed to $607 million, or $1.91 per share, up from $479 million, or $1.40 per share, a year ago. The company guided for per-share earnings of $1.62 to $1.67.

Best Buy shares slipped more than 8 percent before the market opened on Wednesday, as the electronics retailer reported fiscal fourth-quarter revenue and a first-quarter forecast that missed Wall Street's expectations.

In Best Buy's much smaller global segment, revenue increased 2.5%, driven by growth in Mexico.

For the current quarter ending in May, Best Buy expects its per-share earnings to range from 35 cents to 40 cents.

Best Buy also announced that it was increasing its quarterly dividend by 21% to $0.34 a share, and starting a $3 billion share buyback program that will be completed over the next two years.




Adjusted net earnings were $621 million, compared to $524 million past year.

The company previously said its domestic revenue would take a $200 million hit from Samsung Galaxy Note 7 smartphone recalls and the absence of those sales during the fourth quarter.

For the period, Best Buy said, domestic revenue fell 1.4%, driven by a comparable sales decline of 0.9%, in line with the down 1% to up 1% it had guided for. Excluding items, earnings came in at $1.95 per share, which beat analyst estimates of $1.67 per share.

Best Buy's net revenue fell 1 percent to $13.48 billion in the three months ended January 28, missing the average analyst estimate of $13.62 billion, according to Thomson Reuters I/B/E/S. The retailer reported a 0.9 percent decline in U.S. same-store sales versus an expected increase 0.4 percent. Domestic online revenue grew 18% on a comparable basis on increased traffic and better conversion rates.

The company's global revenue increased 2.5 percent year-over-year to $1.14 billion, driven primarily by comparable sales growth of 0.9 percent primarily from business in Mexico.

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