Best Buy Earnings Surpass Forecasts

Best Buy (BBY Quote) posted fourth-quarter earnings Tuesday that surpassed analysts' estimates and said earnings growth would continue in the current year.

The consumer electronics retailer earned $189.7 million, or 89 cents a share, up from $163.8 million, or 78 cents a share, in the year-ago period. The consensus estimate of 18 analysts surveyed by Thomson Financial/First Call was 82 cents a share.

Sales were $5.5 billion, up from $4.3 billion in the year-ago quarter.

Best Buy opened 62 new stores and relocated or expanded 10 stores during 2000. It plans to open 60 new locations this year, including about 20 smaller-market stores. Seven stores will be remodeled or relocated.

Best Buy executives said they expect positive results for this year, with earnings of $2.15 to $2.20 a share. The consensus analyst estimate is $2.07 a share.

Best Buy jumped $3.70 a share to $40.50 in preopen Instinet trading. On Monday, the company closed at $36.80 on the New York Stock Exchange.