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Best Buy (BBY) Q3 2022 profit beaten

Customers wait outside a Best Buy store in downtown Toronto, Ontario on November 23, 2020 to pick up their orders online.

Geoff Robbins | AFP | Getty Images

Best Buy’s fiscal third quarter profits beat Tuesday’s estimates, but stocks fell as investors worried about rising shipping costs and falling demand for consumer electronics.

Stocks fell nearly 11% in pre-market trading.

Here’s what the company did for its fiscal third quarter ended Oct. 30 compared to what Wall Street expected, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 2.08 adjusted vs. $ 1.91 expected
  • Turnover: 11.91 billion dollars against 11.58 billion dollars expected

The consumer electronics retailer has seen sales increase during the pandemic, as Americans improved technology in their home offices, purchased new appliances for their kitchens and invested in home theaters. During the third quarter, Best Buy said it saw these trends continue as home theaters and home appliances increased sales, as did smartphones.

Same-store sales in the quarter increased 2% in the United States, on top of the 22.6% growth in the previous year. This exceeded the company’s own forecast that comparable store sales would be flat at 3% in the quarter.

However, analysts fear that Best Buy will experience a tough combination in the coming year, with consumers shifting spending to other areas such as travel and entertainment. This may force the retailer to offer more promotions on laptops, smartphones and more, even though supply chain costs remain high.

Best Buy’s third-quarter net income reached $ 499 million, or $ 2.00 per share, from $ 391 million, or $ 1.48 per share, a year earlier.

Excluding items, it gained $ 2.08 per share, higher than the $ 1.91 per share expected by analysts polled by Refinitiv.

Net sales reached $ 11.91 billion from $ 11.85 billion a year earlier, beating estimates of $ 11.58 billion.

As of Monday’s close, shares of Best Buy have risen 38% this year. Shares hit a 52-week high of $ 141.97 on Monday and closed at $ 138.00, up 1.37%. The market value of the company is $ 33.94 billion.

This is last minute news. Please check for updates.

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