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Best Buy’s Q2 Profit Falls 30%, Missing View; Forecast Lowered (BBY)

Electronics retailer Best Buy Co., Inc. ( BBY ) on Tuesday posted lower-than-expected second quarter earnings and cut its full-year outlook, as slower TV sales cut into its bottom line.

The Richfield, MN-based company reported fiscal second quarter net income of $177 million, or 47 cents per share, compared with $254 million, or 60 cents per share, in the year-ago period.

Revenue edged slightly higher from last year to $11.35 billion.

On average, Wall Street analysts expected a higher profit of 52 cents per share, on larger revenue of $11.47 billion.

Looking ahead, the company said it expects adjusted full-year profits to be in the low-end of its previously-announced range of $3.30 to $3.55 per share. Analysts are currently looking for earnings of $3.45 per share for the year.

Despite the seemingly negative earnings report, Best Buy shares rose 46 cents, or +1.4%, in premarket trading Tuesday.

The Bottom Line

Shares of Best Buy ( BBY ) have a 2.56% dividend yield, based on last night's closing stock price of $24.96. The stock has technical support in the $22-$23 price area. If the shares can firm up, we see overhead resistance around the $28 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.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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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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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