Best Buy Shares Rebound on Dividend Hike Plan but Remain Weak after Downbeat Report
Mar, 01st 14:45
Shares of Best Buy Co. Inc. pared their losses after having fallen as much as 8.6% in premarket trading on Wednesday. The company reported fiscal fourth-quarter revenue and a first-quarter forecast that missed analysts’ expectations.
Best Buy posted net income of $607.0 million, or $1.91 per share, up from $479.0 million, or $1.40 per share, for the same period last year. Adjusted for one-time items, EPS reached $1.95, beating the $1.67 economists’ consensus.
However, sales only hit $13.48 billion, down from $13.62 billion one year ago, and below the $13.62 billion forecast by analysts. Domestic same-store sales were reported to drop 0.9%, which contrasted with expectations calling for a rise of 0.4%.
For the current quarter, Best Buy expects revenue to come in the range of $8.2 billion and $8.3 billion while domestic same-store sales are forecast to decline from 1% to 2%.
Nevertheless, the company announced a share repurchase plan that accelerates from $1 billion over two years to $3 billion over two years and would raise its quarterly dividend 21% to 34 cents a share.
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