Best Buy (BBY) is showing us that markets can really remain irrational much longer than anyone (including governments) can stay solvent.In a world
Trading up 4% in the pr-market, investors appear not to notice the statement by management that the outlook for the next quarter was guided down by 10% on the low end. They also appear to have missed the fact that sales are slowing. But, it is possible that investor have punished the stock just a bit too much over the last few months and this this is just a refresh of assumption that were much too bearish.
It would not be unexpected for many savvy investors to fade this near the 50-day. But then again…. (update – now shares are up only 1.5% , falling by 2.5% since the time this writing started about 10 minutes ago)
From Marketwatch:
NEW YORK (MarketWatch) — No. 1 U.S. electronics chain Best Buy Co. said Thursday that its fiscal fourth-quarter profit fell to $651 million, or $1.62 a share, from $779 million, or $1.82, a year earlier. Sales in the quarter ended Feb. 26 dropped to $16.3 billion from $16.6 billion. Comparable-store sales fell 4.6%. Excluding items, the company said it earned $1.98 a share. Analysts surveyed by FactSet estimated the Minneapolis-based retailer to earn $1.84 a share on sales of $16.3 billion. The company forecast adjusted profit of $3.30 to $3.55 a share for the year on sales of $51 billion to $52 billion. Comparable store sales are expected to be flat to down 3%. Analysts were looking for profit of $3.56 a share on sales of $52.1 billion, according to the FactSet poll
