U.S. electronics retailer Best Buy Co. Inc. on May 24 posted fiscal first-quarter earnings that beat expectations due to solid performances in all its categories, but its shares tumbled after the company did not raise its guidance for the fiscal year.
"We just want to give ourselves plenty of room as we head through the rest of the year, given how much of the year there is left," CFO Corie Barry said during a conference call with analysts.
In lunchtime trading in New York, Best Buy's shares traded down $6.10, or 8%, to $69.85.
The company reported that non-GAAP diluted EPS in the fiscal first quarter ended May 5 rose to 82 cents from 60 cents in the year-ago period, surpassing the S&P Capital IQ mean consensus estimate for normalized EPS of 74 cents.
Revenue rose to $9.11 billion from $8.53 billion year over year due to demand in categories such as mobile phones, appliances, computing, tablets and smart home.
For the fiscal second quarter, it forecast non-GAAP diluted EPS of 77 cents to 82 cents, an increase of 12% to 19% year over year, on enterprise revenue between $9.1 billion and $9.2 billion.
Best Buy maintained fiscal 2019 guidance for non-GAAP diluted EPS from $4.80 to $5, which it announced March 1.
