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

RELATED NEWS

Trade BBY now with

3/29/2012 8:25 AM ET

Consumer electronics retailer Best Buy Co. Inc. (BBY: Quote) 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.

To receive FREE breaking news email alerts for Best Buy Co Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

<<Previous 131 Articles

Editors Pick

Stocks Move Higher On Comments From Fed Officials - U.S. Commentary

Stocks have moved mostly higher over the course of the trading day on Tuesday after showing a lack of direction earlier in the session. The major averages have climbed more firmly into positive territory, offsetting the modest losses posted in the previous session. The major averages have moved roughly sideways in recent trading, hovering near their new highs for the session.

Stocks Turning In Another Lackluster Performance - U.S. Commentary

Stocks have shown a lack of direction over the course of the trading day on Tuesday after failing to sustain an early upward move. The choppy trading extends the lackluster performance that was seen throughout the previous session. The major averages are currently posting modest gains but have pulled back off their highs for the session.

Obama's Approval Rating Holding Steady Despite Scandals

While a recent series of scandals have caused headaches for the White House, the results of a Washington Post-ABC News poll released Tuesday suggest that the news has not had an impact on President Barack Obama's approval rating. The poll showed that 51 percent of Americans approve of the way Obama is handling his job as president compared to 44 percent that disapprove.