Tuesday, December 12, 2006

Best Buy: Beats On Revs, Misses on EPS, Higher Sales, But Lower Prices Hurt Margins

Best Buy Earnings
Live In Play, www.briefing.com, 12-Dec-06, 08:08

BBY Best Buy misses by $0.05, cites margin pressure, reaffirms FY07 EPS outlook (53.92 )
Reports Q3 (Nov) earnings of $0.31 per share, $0.04 worse than the Reuters Estimates consensus of $0.35; revenues rose 15.5% year/year to $8.47 bln vs the $8.45 bln consensus. BBY says very competitive climate put pressure on our margins, resulting in earnings below expectations. CEO comments, "The market share gains we saw, and the new customers we acquired, give us momentum as we begin our fourth quarter, which generates the largest percentage of our earnings for the year." Co reaffirms guidance for FY07, says co is still on track to deliver EPS $2.65-2.80 vs. $2.82 consensus. Co sees FY07 same store sales to rise 4-5% vs previous co guidance of 3-5%.
posted by ssg5