Investing.com - Best Buy Co Inc's (NYSE:BBY) shares experienced a dramatic reversal on Tuesday, with shares first ascending following the company’s positive second quarter earnings report - but then crashing as comments from the company’s leadership sparked concern that Best Buy’s growth may taper going forward.
Best Buy reported second quarter earnings of $0.69 on revenue of $8.94 billion, topping analysts estimates by $0.06 and $280 million, respectively. The company also issued solid third-quarter guidance, calling for revenue of $9.3 billion to $9.4 billion and EPS of $0.75 to $0.80. Analysts anticipate third quarter revenue of $9.0 billion and EPS of $0.65,
While shares initially rose on the news, they took an about-face after CEO Hubert Joly, said the robust 5.4% rise in same-store sales during the recent quarter is not expected to continue. He raised further concerns when he said that it's "nearly impossible" right now to predict the impact of Hurricane Harvey on its full-year forecast.
Best Buy's shares were down 11.8% in afternoon trade.
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