Calendar Clunks Best Buy

Updated from 9:06 a.m. EST

SAN FRANCISCO -- For investors, a calendar shift dulled some of the shine from Best Buy's(BBY) glowing third-quarter report.

The consumer-electronics giant posted a 52% jump in third-quarter earnings, soundly beating Wall Street's expectations. But the results were buoyed by an extra week of sales that came during the pivotal post-Thanksgiving holiday shopping season.

December will lose a week of sales because of the calendar shift, which could weaken fourth-quarter results. Best Buy executives acknowledged on Tuesday's conference call that earnings for the period could range between $1.70 and $1.80, below analysts' average estimate of $1.82.

Nonetheless, Best Buy lifted its profit forecasts for the full year. The Minneapolis-based retailer now expects earnings of $3.10 to $3.20 a share, up from its prior guidance of $3 to $3.15. Analysts, on average, target fiscal 2007 EPS of $3.12.

Shares of the company were down $1.01, or 2%, to $50.13 in afternoon trading. Rival Circuit City(CC), which reports earnings Friday, was slipping 26 cents, or 3.9%, to $6.43.

Richard Weinhart, an analyst from BMO Capital Markets, says analysts should have done a better job of accounting for the calendar shift to reflect the disparity between the third quarter and the fourth.

"It had more to do with us analysts not forecasting accurately," he says. "Best Buy is in line with what they've said all along."