“Technology stocks were mostly in the red in early trading Wednesday after electronics retailing giant Best Buy Co. cut its earnings outlook for 2009, with its chief executive saying the current weakness in consumer spending was creating ‘the most-difficult climate we have ever seen,'” Rex Crum reports for MarketWatch.
Before the market opened, Best Buy lowered its 2009 earnings outlook to between $2.30 and $2.90 a share. The No. 1 electronics retailer in the U.S. had earlier forecast earnings between $3.25 and $3.40 a share, while analysts surveyed by FactSet Research had estimated Best Buy would earn $3.06 a share,” Crum reports.
“Many leading personal computer and electronics companies such as Hewlett-Packard Co., Dell Inc. and Apple Inc. sell their products as Best Buy’s stores, and Calyon Securities analyst Shebly Seyrafi said those companies will feel some impact from Best Buy’s actions,” Crum reports.
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