Best Buy Posts Profit On Cost-Cutting, Tax Benefit

MINNEAPOLIS (AP) — Best Buy says a big tax benefit and cost-cutting pushed it to a profit in its fiscal first quarter. But its sales fell short of expectations, sending its stock lower.

Best Buy has been dealing with increased competition from online stores, notably, and discounters like Wal-Mart.

The electronics seller says its net income was $461 million, or $1.31 per share. That’s a turnaround from a loss of $81 million, or 24 cents per share, a year earlier.

Adjusted earnings were 33 cents per share. Analysts expected 19 cents.

Total revenue fell 3 percent to $9.04 billion from $9.35 billion. Analysts polled by FactSet expected $9.23 billion.

Revenue at stores open at least 14 months fell 1.9 percent.

Shares fell 90 cents, or 3.6 percent, to $24.45 in premarket trading.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From WCCO | CBS Minnesota

Good Question

Listen Live