logo
Share SHARE
FONT-SIZE Plus   Neg

Best Buy Reverses To Loss In Q4; Guides FY13 - Quick Facts

Consumer electronics retailer Best Buy Co. Inc. (BBY) reported a fourth-quarter GAAP net loss of $1.7 billion, or $4.89 per share, compared with an income of $651 million, or $1.62 per share a year ago. The latest quarter results include $2.6 billion of charges mainly related to the actions announced on November 7, 2011, consisting of the purchase of Carphone Warehouse Group plc's share of the Best Buy Mobile profit share agreement and related costs, a non-cash impairment charge to reflect the write-off of Best Buy Europe goodwill, and restructuring charges.

Excluding charges, quarterly adjusted earnings were $871 million or $2.47 per share, an increase from $798 million or $1.98 per share for the prior-year period. On average, 25 analysts polled by Thomson Reuters expected earnings per share of $2.16 for the quarter. Analysts' estimates typically exclude one-time items.

Revenue totaled $16.63 billion compared with $16.08 billion in the earlier year period, while twenty-two analysts estimated revenues of $17.20 billion for the quarter. Comparable store sales for the quarter slid 2.4 percent versus a decline of 4.7 percent last year.

For fiscal 2013, the company sees earnings per share in the range of $2.85 - $3.25 on a GAAP basis, as well as $3.50 - $3.80 on an adjusted basis, on revenue of $50.0 billion - $51.0 billion range, reflecting a comparable-store sales decline in the range of 2 to 4 percent. Analysts project full-year earnings of $3.70 per share and revenue of $51.88 billion.

The company's actions to enhance business performance include 800 million in planned cost reductions by fiscal 2015 and $250 million in fiscal 2013; opening of 100 U.S. Best Buy Mobile small format stand-alone stores in fiscal 2013; as well as closure of 50 U.S. big box stores in fiscal 2013. Further, Best Buy intends to to grow domestic segment online revenue 15 percent in fiscal 2013.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Everyone knows that the Federal Reserve will raise interest rates next Wednesday at the conclusion of its two-day policy meeting. After all, Fed speakers have been jawboning a rate hike over the past few weeks. With the markets reacting with eerie calm to Donald Trump's win, policy makers have no... GOP strategist Karl Rove has criticized U.S. President-elect Donald Trump's comments on aircraft maker Boeing Co.'s contract for a new Air Force One plane, saying they were inaccurate and de-stabled the stock of a major company. Air Force One is the official air plane for the U.S. President. Elon Musk's space transport company SpaceX has lost a satellite launch order from one of its customers due to the delay in its rocket launch schedule after one of its rockets exploded in September.
comments powered by Disqus
Follow RTT