Best Buy (NYS: BBY) shares took a hit on Thursday -- and continued to fall on Friday -- after posting unimpressive quarterly results and announcing a makeover strategy that provided more questions than answers.
It's hard to say that Best Buy is fading when it's projecting profitability to grow by 3% to 12% this fiscal year, but keep in mind that the consumer-electronics retailer's bottom-line outlook is on a per-share basis. Given the number of shares that it purchased last year and is aiming to snap up this fiscal year, we're still looking at adjusted earnings to decline in the fiscal year that lies ahead.
The call to close 50 of its superstores when the economy is improving hints that this isn't something that a simple concept tweak will fix.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
Linux vendor Red Hat (NYS: RHT) posted better-than-expected quarterly results. Maybe it's time for the company to change its moniker to Black Hat. There's certainly no red ink on its income statement these days.
A123 (NAS: AONE) took a hit after announcing plans to correct potentially defective prismatic cells. The maker of lithium-ion batteries for electric vehicles will take a $55 million hit to remedy the situation. Electric cars have had more than a few misfortunate headlines lately, though that's nothing that skyrocketing gasoline prices can't fix.
Sirius XM Radio (NAS: SIRI) is suing a pair of music-industry organizations for interfering with its ability to strike licensing deals directly with the major labels. Remember the good old "payola" days, when labels paid record stations to promote their music? The tables are turned, but now Sirius XM is fighting back.
Now that you've had a glimpse of the past, let's delve into the future. A new report details the latest Rule-Breaking multibagger that has earned Fool co-founder David Gardner's attention. The report is free, and you're closer to it than you think. Check it out now.
At the time thisarticle was published The Motley Fool owns shares of Best Buy. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.Longtime Fool contributorRick Munarrizcalls them as he sees them. He owns no shares in any of the stocks in this story and is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.