Best Buy Earnings, Revenue Top Estimates
Best Buy on Friday reported quarterly earnings and revenue that exceeded expectations as it cut costs to offset nearly flat sales during the key holiday quarter. The consumer electronics giant also said it had not received a buyout offer from its founder to take the company private.
Following the earnings report, the electronics retailer's shares rose before the opening bell. (Click here to tracking the company's stock in premarket trade.)
Its loss after paying preferred dividends totaled $409 million, or $1.21 per share, for the three months ended Feb. 2. That compares with a loss of $1.82 billion, or $5.17 per share, in the prior-year quarter.
Excluding restructuring and other costs, earnings fell to $1.64 per share from $2.16 a share in the year-earlier period .
Revenue ticked slightly higher to $16.71 billion from $16.67 billion a year ago.
Wall Street had expected Best Buy to report earnings excluding items of $1.54 a share on $16.34 billion in revenue, according to a consensus estimate from Thomson Reuters.
The electronics chain has been cutting costs to offset weak sales amid tough competition.
During the quarter, same-store sales rose 0.9 percent in the U.S. but comparable sales fell 6.6 percent internationally. Its total same-store sales fell 0.8 percent in the period.
The company did not offer guidance in its quarterly release.
Best Buy originally planned to release its report on Thursday but delayed it by a day to give former Chairman and CEO Richard Schulze a chance to meet the midnight deadline to submit a buyout proposal to take the company private. (Read More: Best Buy's Talks With Founder End.)
The company said Friday that it "received no such offer and will continue to focus on its transformation for the benefit of all of its stakeholders."
Best Buy stock has dropped in recent months as the company continues to fight consumer "showrooming" at its stores, where people often visit to try out items but then purchase them later at competitors such as Amazon or Wal-Mart Stores.
To fend off lower-priced rivals, Best Buy recently made its holiday price-matching program a year-round policy.