Best Buy on Wednesday reported fourth-quarter earnings that were better than analysts had projected, but projections for the first quarter that were not. Its shares fell by as much as 9% in premarket trading.
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Best Buy is sinking after its earnings forecast was weaker than expected (BBY)
Best Buy also announced that it was increasing its quarterly dividend by 21%.
An employee checks computer inventory that's part of a Black Friday sale at a Best Buy on November 24, 2016, in Orem, Utah.
The electronics retailer said it saw first-quarter adjusted earnings per share in a range of $0.35-$0.40, short of the estimate for $0.49 according to Bloomberg. It also forecast a drop in same-store sales — at locations open for at least one year.
Earnings beat for a 13th straight quarter, at $1.95 versus $1.67 expected. Revenue fell slightly short of expectations, at $13.5 billion ($13.6 billion expected.)
Same-store sales of mobile devices fell 4.4%. Other consumer-electronics and appliance sales increased.
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Best Buy also announced that it was increasing its quarterly dividend by 21% to $0.34 a share, and starting a $3 billion share buyback program that will be completed over the next two years. Its stock jumped 36% in the year through Tuesday's market close.
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