The stock's rating was lowered to a hold from a buy. TheStreet Ratings cited "deteriorating net income, poor profit margins and a generally disappointing performance in the stock itself."
In the third quarter, Best Buy's diluted earnings per share dropped 22% to 42 cents a share and its operating income fell 54% to $178 million.
Best Buy is expected to see earnings per share growth in 2012. Best Buy estimates fiscal 2012 earnings per share of between $3.35 to $3.65 a share; adjusted earnings per share for 2011 were $3.43.TheStreet Ratings noted that Best Buy's revenue growth is slightly higher than the industry's average of 3.9%. Best Buy's third-quarter revenue of about $12.1 billion was 2% higher than the previous year. According to a recent poll by TheStreet, which asked readers which CEO should be fired this year, Best Buy CEO Brian Dunn took this dubious prize. In other news Thursday, Best Buy closed its acquisition of managed service provider MindShift. Best Buy estimates the small- to mid-sized managed service provider market is about $40 billion, and it hopes the acquisition will help it gain market share in this area. Best Buy will report its December sales on Friday. Shares of Best Buy dropped 13 cents to $23.10 in trading Thursday. -- Written by Alexandra Zendrian
>To contact the writer of this article, click here: Alexandra Zendrian >To submit a news tip, send an email to: firstname.lastname@example.org. >To follow the writer on Twitter, go to Alexandra Zendrian.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV