Best Buy Shares Tumble Following Q3 Results

Shares of

dropped over 6 percent in pre-market trading after the company reported results for the third quarter on Thursday. The Richfield, Minnesota-based company reported quarterly net income of $125 million, or $0.36 per share, compared to $107 million, or $0.30 per share, in the year-ago period. Excluding items, earnings from continuing operations rose 21 percent to $0.41 per share. Its total revenue slipped to $8.82 billion from $9.03 billion. However, analysts were expecting earnings of $0.35 per share on revenue of $8.86 billion. The average estimate among 69 Estimize users was for earnings of $0.37 per share and revenue of $8.86 billion. Domestic revenue gained 1.2 percent year-over-year to $8.1 billion in the third quarter, while international revenue dropped 29.9 percent to $729 million. Comparable online sales climbed 18.3 percent for the latest quarter. Its domestic same-store sales rose 0.5 percent in the quarter. Hubert Joly, Best Buy chairman and CEO, said, "We have delivered another quarter of Domestic comparable sales growth and operating income expansion…We are going into the Holiday clear on our priorities and our plan, and with a better trained, engaged and most importantly, highly determined team. I am grateful for what they have accomplished so far this year and extremely proud of their capabilities and passion to win." Best Buy shares fell 6.51 percent to $29.30 in pre-market trading.