Shares of Best Buy fell more than 4 percent Tuesday after the electronics retailer reported disappointing quarterly results.The consumer electronics retailer reported net income of $150 million, or $0.31 per share, for the quarter ending November 25, up from $138 million, or $0.28 a year earlier. Analysts had been expecting $0.35 per share.
The consumer electronics retailer reported net income of $150 million, or $0.31 per share, for the quarter ending November 25, up from $138 million, or $0.28 a year earlier. Analysts had been expecting $0.35 per share.
The news is a bad omen for investors, who have been counting on strong consumer electronics sales to push ahead the stocks of everyone from mobile phone chip giant Texas Instruments to LCD glass specialist Corning.
The shortfall was caused, in part, by a drop in Best Buy’s gross profit to 23.5 percent of revenue from 24.4 percent during the year-ago quarter. Best Buy attributed the change to increased sales of low-margin products such as notebook computers and gaming consoles.
The news pushed shares of a wide-swath of electronics retailers lower. Shares of competitors CircuitCity fell more than 5 percent, while Tweeter Home entertainment group fell more than 11 percent.
CircuitCityBest Buy shares fell $2.48 to $51.44 in Tuesday trading.—Red Herring Staff
Red Herring Staff