Biz Brief: Best Buy First-Quarter Earnings Disappoint; Shares Drop

Best Buy (BBY) reported flat growth in first quarter earnings of $155 million. Earnings per share actually declined to 36 cents from 42 cents in the same quarter last year. Revenue in the first quarter grew 6.8% to $10.79 billion from $10.1 billion last year. The results were far below analyst expectations of earnings of 50 cents a share, and revenue growth of 8.4%, to $10.9 billion.

Best Buy reported same-store sales rose 2.8% in the quarter and reaffirmed guidance. "While our financial results in the fiscal first quarter were below expectations, we remain confident that the strategic investments we are making will deliver more robust connected solutions for customers and support increased margin expansion during the fiscal year," Jim Muehlbauer, Best Buy's CFO said in a statement.

Best Buy shares sank some 6% in premarket trading.