Shares of Best Buy (NYSE: BBY) were down 4.8% as of 1:00 p.m. EST after the electronics retailer announced weaker-than-expected third-quarter 2017 results.
Best Buy's quarterly revenue climbed 4.1% year over year to $9.32 billion -- below consensus estimates for $9.36 billion -- including 4.4% comparable-sales growth. On the bottom line, that translated to 23.2% growth in net income to $239 million, and 30% growth in earnings per diluted share, to $0.78, in line with investors' expectations. Note the latter figure includes a net benefit of roughly $0.04 per share from stock repurchases over the past year.
According to Chairman and CEO Hubert Joly, Best Buy's top line suffered this quarter from a combination of lower-than-expected sales in the mobile category and the impact of natural disasters in Texas, Florida, Puerto Rico, and Mexico.
Nonetheless, Joly insisted the company is "well positioned for a successful [holiday] season," so it's increasing its full-year financial guidance.
Best Best Buy now expects full fiscal-year revenue in the range of $41 billion to $41.3 billion, or growth of 4% to 4.8% (up from 4% previously).
That range assumes fiscal fourth-quarter revenue of $14.2 billion to $14.5 billion, and quarterly adjusted earnings per share of $1.89 to $1.99. However, Wall Street was already anticipating fourth-quarter earnings of $2.03 per share on revenue of $14.35 billion.
Of course, Best Buy could certainly be taking a conservative approach to guidance for its crucial holiday quarter. But given its revenue miss in Q3 -- at least relative to the market's expectations -- and its underwhelming guidance, it's no surprise to see shares modestly pulling back today.
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