Best Buy Co., Inc (NYSE:BBY) just about getting by in Q2
The DJI is trying desperately to bring its 4 session losing streak to an end and is a looking a little healthier as of Tuesday 20 August. It was up 0.22% or up 34 points. The 2.2% pullback last week had in impact on retail stocks. Last week the company’s Q2 results skirted analysts’ estimates on revenue. Walmart missed sales and EPS estimates as well. Fortunately, Best Buy Co., Inc (NYSE:BBY) managed to fare a little better and had its investors heaving a sigh of relief.
The company’s stock price has been heading northward this year and year to date it has climbed 170%. BBY announced the 1st profitable quarter that topped analyst estimates. With the exclusion of some items, its earnings per share was $0.32 which outran the projected $0.12/share by more than a few laps. The $9.3B revenue topped analyst estimates but could not reach 2012 levels. The hearty results have not gone unnoticed and BBY stock rose by 13.24% in Tuesday’s trading. The opening price of the shares was $34.18 which reached an intraday high of $34.82 and closed at $34.80. Over 31.45 million shares were traded in Tuesday’s training session while the average volume of shares traded over a 30-day period was 4.23 million.
Cost-cutting bears fruit
The company managed to top estimates primarily due to its stringent cost-cutting measures, rather than exemplary revenue growth. Though this is not necessarily a negative, what it also means is that in terms of revenue growth, Amazon is still managing to put a lid on BBY. Long term risks still pose a threat to the company’s business model and it will have to stand up to AMZN by upping its ecommerce position and back-tracking its revenue drop. BBY is a retailer of mobile, consumer, appliances and entertainment products.