Best Buy Co. (BBY) shares fell the most in more than 8 years after the company reported Tuesday lower-than-expected quarterly sales. The world’s largest consumer-electronics retailer, based in Minneapolis, said its market share in TVs, mobile computing and video game software fell.
“There remains a significant amount of business still ahead of us in the holiday selling season and we don’t have complete visibility to how customers will behave over the next several weeks,” said CFO Jim Muehlbauer.
Best Buy reported third quarter earnings, which ended Nov. 27, of $0.54/share, or $217 million, missing the average analyst estimate of $0.60/share. Revenue fell 1% to $11.89 billion, from $12.02 billion last year. Analysts expected revenue of $12.45 billion. The co. also said it now expects net income of $3.20 to $3.40 per share, from a prior range of $3.55 to $3.70 per share. The company noted that “this new guidance range includes the favorable impact of share repurchases made year-to-date through the end of the fiscal Q3 which approximates $0.12.”
BBY nosedived as much as 18 percent to $34.25 in early trading, posting the biggest intraday drop since Aug. 8, 2002.
At last check, shares of Best Buy fell $6.11, or 14.65% to $35.59.