Investing.com - U.S. electronics retailer Best Buy saw shares fall sharply in pre-market trade on Tuesday, after the company reported disappointing third quarter earnings.
Earlier in the day, in its third quarter earnings report, Best Buy said adjusted earnings per share came in at USD0.18, compared to expectations for adjusted earnings of USD0.12 per share.
The company’s third quarter revenue totaled USD9.36 billion, missing forecasts for revenue of USD9.37 billion.
Comparable store sales rose 0.3% in the June-to-September period, disappointing expectations for a 0.7% increase.
"First and foremost, we are committed to being competitive on price," said Best Buy CFO Sharon McCollam. "It is table stakes in our transformation. So if our competition is in fact more promotional in the fourth quarter, we will be too and that will have a negative impact on our gross margin. "
"As a result of the additional holiday pressures we just discussed, we believe it is prudent to narrow this range for the fourth quarter to 60 to 70 basis points,” she added.
Following the release of the report, Best Buy shares tumbled 7% in pre-market trade.
Meanwhile, the outlook for U.S. equity markets was mildly lower. The Dow Jones Industrial Average futures pointed to a flat open, S&P 500 futures lost 0.1%, while the Nasdaq 100 futures indicated a decline of 0.1% at the open.
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Best Buy shares tumble 7% after Q3 earnings disappoint
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