NEW YORK (
) -- Shares of retailer
(BBY - Get Report)
ticked lower in trading Thursday on the same day the stock was downgraded by
The stock's rating was lowered to a hold from a buy.
"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.
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
, 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
. 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
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