NEW YORK (AP) – Best Buy shares plunged Thursday after reporting disappointing quarterly sales and a cautious outlook for the key holiday shopping season as it faces price pressures and tougher competition from online stores.
The electronics retailer said it expects “near flat” revenue in the fourth quarter – which includes key holiday shopping.
Its stock tumbled more than 5 percent in premarket trading shortly ahead of the market open.
The Richfield, Minnesota-based company reported that its fiscal third-quarter profit rose 16.8 percent to $125 million, or 36 cents per share. Earnings, adjusted for one-time gains and costs, came to 41 cents per share, surpassing Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of 35 cents per share.
But the company reported a 2.4 percent drop in revenue to $8.82 billion, which fell short of Wall Street forecasts. Ten analysts surveyed by Zacks expected $8.84 billion.