Best Buy (NYSE:BBY) stock is taking a beating on Tuesday despite the company beating estimates in its most recent earnings report.
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The fall of BBY stock has to do with concerns investors have about comments made during its fiscal Q1 2022 earnings report. According to the company, strong demand during the period may not stay steady throughout the year.
Here’s what Best Buy CFO Matt Bilunas has to say on the matter.
“As we think about the back half of this year, we expect shopping behavior will evolve as customers are able to spend more time on activities like eating out, traveling and other events. It is difficult to know exactly how that impacts our business, especially as we lap particularly strong sales in the back half of last year. Therefore, at this time, we are leaving our original FY22 back-half sales assumptions unchanged.”
The tepid response from Best Buy for its second half of the year is dragging down an otherwise strong earnings report. That includes adjusted earnings per share of $2.23 on revenue of $11.64 million. Both of these are above Wall Street’s estimates of $1.91 per share and $11.58 billion.
The Best Buy earnings report brings heavy trading to BBY stock today. As of this writing, more than 7 million shares of the company’s stock have changed hands. That’s a major jump over its daily average trading volume of about 2.4 million shares.
BBY stock is down 15.9% as of Tuesday morning but is up 15.6% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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