Best Buy (NYSE:BBY) released its fiscal first-quarter results before markets open on Tuesday.
Net income of first-quarter increased over 77% to $229 million from $129 million last year. Earnings per share rose to 71 cents, compared with 37 cents of the same period last year, beating estimates of 35 cents by S&P Global Market Intelligence. However, Best Buy’s revenue dropped 1.3% from $8.56 billion to $8.44 billion, which is the third consecutive quarters of decline due to the poor performance of mobile phones and computers, surpassing $8.3 billion expectation. Total comparable sales, excluding the influence of installment billing plans, dropped 0.1% in the first quarter, which was estimated to decrease by 1.6%.
The decline in net income is partly due to the impact of April’s Japan earthquake and financial hit related to company’s services divisions on digital imaging products. Best Buy said that these factors would decrease earnings per share by 12 to 13 cents in the second quarter of 2016.
The company also announced that its current Chief Financial Officer, Sharon McCollam, would quit on June 14. Current Chief strategic growth officer Corie Barry will become new CFO, and the chief administrative officer duties will be split up. Sharon McCollam would still be an advisor until January 28.
“Our teams delivered a strong first quarter, with better-than-expected revenue, improved profitability and progress against our fiscal 2017 initiatives,” said Best Buy Chairman and CEO Hubert Joly. “Although we are reporting better-than-expected results today, we are not raising our full year outlook as the first quarter represents less than 15% of full year earnings and at this stage we have no new material information as it relates to product launches throughout the year.” Best Buy also estimated an adjusted earnings per share of 38 to 42 cents of the second quarter.
After the announcement, Best Buy’s share decreased 7.6% to $30.49 in the morning trading on Tuesday.