Shares of Best Buy (BBY) are down $1.87, or 7%, at $24.75, in early trading after the company this morning reported fiscal Q4 revenue below analysts’ estimates and offered a year revenue and profit view below consensus.
Revenue in the three months ended March 3rd rose 3.4%, year over year, to $16.63 billion, yielding EPS of $2.47, excluding some costs.
Analysts on average were modeling $17.2 billion and $2.16 per share.
The company’s sales on a “comparable store” basis fell 2.4%, year over year, and improvement from the 4.7% decline in the prior-year period.
Best Buy CEO Brian Dunn said the company plans a “new transformation strategy” to improve operating performance, including closing 50 “big box” stores in the U.S. this fiscal year, and opening more “Best Buy Mobile” kiosks, while opening 50 new “Five Star” stores in China.
That should produce $800 million in cost reductions by 2015, the company said.
For this year, the company sees revenue in a range of $50 billion to $51 billion, and EPS, excluding some costs of $3.50 to $3.80.
Analysts have been modeling $51.9 billion and $3.70 per share.
Management will host a conference call with investors at 10:30 am, Eastern time, and you can catch the webcast of it here.
In a note to clients this morning following the announcement, NBG Productions‘s Brian Sozzi writes that he would avoid the stock based on the jumble of “corporate jargon” in the press release “designed to project the future as being the opposite of Circuit City,” adding that “there was surprise on my end that Best Buy is planning to close 50 large box stores in its current fiscal year, and while at it, is downsizing other hulking shrines to retail.”
Fin
No comments:
Post a Comment