Best Buy Co. Inc. (NYSE: BBY) reported its third quarter earnings for fiscal year 2018. The company fell in-line with revenue, but earnings fell short of analysts’ estimates. Shares were down 5.2 percent shortly after open on Thursday.
For the third quarter, Best Buy reported revenue of $9.32 billion, increasing from $8.95 billion the previous year, but falling short of analysts’ estimates by $40 million. The retailer reported an EPS of $0.78, increasing from the previous year’s $0.60, but staying in-line with analysts’ estimates. Same stores sales only increased 4.4 percent, missing analysts’ estimates of 4.8 percent.
Best Buy says that two factors contributed to the weaker than expected third quarter results. The company said its revenue in the mobile department fell short of expectations, largely due to the iPhone X not launching until November, which is the company’s fourth quarter. Best Buy also says the major hurricanes were a factor.
Best Buy says due to these causes the company lost nearly $100 million in revenue and negatively impacted its EPS by $0.03. Same store sales fell by 15 to 20 basis points due to the hurricanes.
Looking ahead, Best Buy is offering free shipping with no minimum along with same day delivery for the upcoming holidays. Hubert Joly, Best Buy chairman and CEO, says that the company is well positioned for a “successful season.”
Best Buy is also increasing its share repurchases to approximately $2 billion, compared to the previous expectation of $1.5 billion.
With the upcoming season, Best Buy has now raised its forecasts. For the fourth quarter, the company is expecting revenue in the range of $14.2 billion and $14.5 billion and an EPS of $1.89 to $1.99.