Shares of Best Buy Co., Inc. (BBY) are falling more than 6% Tuesday morning despite reporting better-than-expected third-quarter results.
The company’s third-quarter net earnings increased to $391 million or $1.48 per share from $293 million or $1.10 per share in the same quarter last year.
Adjusted earnings of $2.06 per share beat the average estimate of analysts polled by Thomson Reuters at $1.70 per share.
Revenue for the third-quarter grew to $11.85 billion from $9.76 billion in the previous year, thanks to U.S. online sales growth of 174%. Analysts expected revenues of $11.00 billion for the third-quarter.
However, the company did not provide any outlook.
Best Buy CFO Matt Bilunas said, “While the demand for the products and services we sell remains at elevated levels as we start the fourth quarter, it is very difficult for us to predict how sustainable these trends will be due to the significant uncertainty related to the various impacts of the pandemic. Thus, similar to the last two quarters, we are not providing financial guidance today.”
In the fourth quarter, Best Buy plans to resume its share buyback, which it had suspended in March citing uncertainty due to Covid-19.
Also, the company’s board has authorized a quarterly cash dividend of $0.55 per share payable on January 5, 2021, to shareholders of record on December 15, 2020.
BBY is currently trading at $114.41. It has been trading in the range of $48.10- $124.89 in the past 52 weeks.
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