Best Buy Rises on Better-Than-Expected Q1 EarningsMd Noman Siddique (Author) Published Date : May 29, 2014 19:33 ET
Best Buy (BBY) advanced after reporting Q1 earnings that were better than estimated. The electronics chain reported Q1 non-GAAP earnings of $0.33 per share, up from $0.32 per share a year prior, and GAAP earnings of $1.31, up from $0.29 per share. Wall Street expected $0.20 per share, according to Capital IQ estimates. Best Buy reported revenue of $9.0 billion, down from $9.3 billion a year prior. The Street expected sales of $9.2 billion. The company said it will have a higher income tax rate going forward on both a GAAP and non-GAAP basis. It estimated these items will affect the quarterly FY15 diluted earnings per share on a year-over-year basis as follows: (1) flat to positive $0.01 in Q2 FY15; (2) flat to negative $0.01 in Q3 FY15; and (3) negative $0.09 to $0.10 in Q4 FY15. For cash tax purposes, the benefit from the reorganization will continue to be amortized. BBY gained 6.7% to $27.05 a share in late-morning trading. It has traded in a 52-week range of $22.15 to $44.66.
Best Buy Rises on Better-Than-Expected Q1 Earnings