Electronics retailer Best Buy Co., Inc. ( BBY ) on Tuesday posted a 13% drop in fiscal third quarter earnings, missing analyst estimates and sending its shares plunging in premarket trading.
The Richfield, MN-based company reported fiscal 2012 third quarter net income of $154 million, or 42 cents per share, down from $217 million, or 54 cents per share, in the year-ago period.
Revenue edged slightly higher from last year to $12.01 billion.
On average, Wall Street analysts expected a much higher profit of 52 cents per share, on larger revenue of $12.13 billion.
Looking ahead, the company said it expects full-year 2012 profit margins to fall by around half a percentage point from last year, and that same-store sales would be flat to down 3%. Same-store sales are an important metric used to measure a retailer's performance, since they only count stores open at least one year.
Best Buy shares fell $2.54, or -9%, in premarket trading Tuesday.
The Bottom Line
Recent optimism that "Black Friday" sales would fall to the bottom line did not pan out. Shares of Best Buy ( BBY ) have a 2.28% dividend yield, based on last night's closing stock price of $28.07. The stock has technical support in the $23-$25 price area. If the shares can firm up, we see overhead resistance around the $30 price level.
Best Buy Co., Inc. ( BBY ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
Created by Dividend.com