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Best Buy shares drop 4% in pre-market trade after Q2 earnings

Published 08/26/2014, 07:34 AM
Updated 08/26/2014, 07:34 AM
Best Buy shares fall 4% ahead of the open after second quarter earnings report

Investing.com - U.S. electronics retailer Best Buy (NYSE:BBY) saw shares fall sharply in pre-market trade on Tuesday, after the company reported lower than expected second quarter revenue.

Best Buy said adjusted earnings per share came in at 42 cents for the 13-week quarter ended August 2, beating expectations for adjusted earnings of 31 cents per share.

The company’s second quarter revenue totaled $8.9 billion, missing forecasts for revenue of $8.98 billion.

Comparable-store sales fell 2.0% on continued weakness in the consumer electronics category.

Sharon McCollam, Best Buy EVP, CAO and CFO, commented, "Industry-wide sales are continuing to decline in many of the consumer electronics categories in which we compete. We are also seeing ongoing softness in the mobile phone category ahead of highly-anticipated new product launches."

She added that, "Absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters."

Following the release of the report, Best Buy Co Inc (NYSE:BBY) shares tumbled 4% in pre-market trade.

Meanwhile, U.S. equity markets pointed to a higher open. The Dow 30 pointed to a gain of 0.15%, the S&P 500 indicated an increase of 0.15%, while the Nasdaq 100 signaled a rise of 0.2% at the open.

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