Best Buy (BBY) Stock Tanks on Weak Q3 Comparable Sales Results

Best Buy (BBY) shares are slumping on Thursday after the electronics retailer earlier this morning reported disappointing third quarter sales figures.
By U-Jin Lee ,

NEW YORK (TheStreet) -- Best Buy (BBY) - Get Report  shares are slumping 6.48% to $29.30 on Thursday after the electronics retailer earlier this morning reported disappointing third quarter sales figures.

Even though profit came in above analysts' forecasts, sales missed projections, dropping 2.3% year-over-year, and its same-store sales also came under expectations. 

For the latest quarter, the company earned 41 cents a share on sales of $8.82 billion. 

Wall Street had expected Best Buy to deliver earnings of 35 cents a share on revenue of $8.83 billion. 

In the same period the year prior, the company earned 34 cents a share on revenue of $9 billion.

Even though same-store sales increased 0.5% in the latest quarter, analysts had expected for a growth of 0.8%. 

This was due to a sluggish demand for tablets and mobile phones. 

CEO Hubert Joly however, did note that the company's "online comparable sales increased 18% as our new mobile site and overall enhanced dotcom capabilities continued to drive higher conversion rates and increased traffic."

Based in Richfield, MN, Best Buy operates as a retailer of technology products, services, and solutions in the U.S. and internationally.

Separately, TheStreet Ratings team rates BEST BUY CO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate BEST BUY CO INC (BBY) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

You can view the full analysis from the report here: BBY

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