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Best Buy (BBY) Tops Q3 Earnings; Tumbles on Sales Miss

Best Buy Co., Inc.BBY , specialty retailer of consumer electronics, came out with third-quarter fiscal 2016 results, wherein adjusted earnings from continuing operations of 41 cents a share came much ahead of the Zacks Consensus Estimate of 35 cents, and increased 20.6% from the prior-year quarter.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 and 2017 has been trending slightly downwards over the last 30 days. However, in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 27.1%.

Revenues: Best Buy generated total revenue of $8,819 million that dipped 2.4% year over year and missed the Zacks Consensus Estimate of $8,842 million. Consolidated comparable-store sales jumped 0.8%.

Management forecasts fourth-quarter fiscal 2016 revenue growth to be in negative low-single digits.

Key Events: Best Buy repurchased 1.9 million shares worth $64 million during the quarter. Also, on Oct 6, 2015, the company paid dividends worth $79 million, at the rate of 23 cents per share.

Zacks Rank: Currently, Best Buy carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

Stock Movement: Best Buy's shares are down nearly 8.4% during pre-market trading hours following the earnings release. Clearly, a negative sentiment is palpable among investors following the company's lower-than-expected sales results.

Check back later for our full write up on Best Buy's earnings report!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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