“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 $3.06 a share,” Crum reports.
“Many leading personal computer and electronics companies such as Hewlett-Packard Co., Dell Inc. and Apple Inc. sell their products as Best Buy’s stores, and Calyon Securities analyst Shebly Seyrafi said those companies will feel some impact from Best Buy’s actions,” Crum reports.
Full article here.
At least they aren’t circuit city
preums!
When are the “SMART” investors going to get it???
Regardless of the financial crisis, Apple Inc. is still one of the most profitable companies out there, with US$ 24 billion cash and US$0 debt. Apple’s profit margins have always remained high, because of its unique products and a great distribution model for software and media (AppStore and iTunes)
Great points! Also, Apple Retail Stores are the most profitable per square foot. It is a destination store that is cutting edge, clean, and a great shopping or learning environment.
Good thing Apple has their own retail stores.
However . . . even the finest, best-built yacht will be sitting in the mud when the tide is out. “Smart” investors know this all too well, and there will be no recovery in AAPL until the tide comes back in. (And none of the charts in my cabinet are reliable anymore.)
With Best Buy, it depends on the store. Some stores are clean, well managed, good customer service. Many Best Buy stores have problems keeping shelves and products looking good. There is not enough emphasis on dusting, cleanliness, or standard procedures for computers and printers. I should know… I’m a BBY manager!
Bogus Buy estimates sales will be down and adjusts their earnings outlook accordingly.
“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.
How does this rocket scientist figure that? Now if sales at BB were down, then they manufacturers would be affected, and BB earnings would be down
This bozo puts the cart before the horse. He confuses cause and effect.
@Randian
However . . . even the finest, best-built yacht will be sitting in the mud when the tide is out.
WTF does that mean? I’ve never seen a yacht sitting in mud. Like all giants of the sea, they head for open water and clear sailing when the tide is out. We think your charts are useless too. No wonder you haven’t been making much sense lately.
BB’s Total Debt to Equity ratio (MRQ) is 56.61 which means 56 percent of the company’s assets have been financed with borrowed income in the latest quarter. It’s also a good indicator of their financial leverage. Circuit City squandered all of its financial leverage and because their problems are systemic, not even a billion (debtor-in-possession) dollars can save them.
Others who have squandered their equity to pay the bills…
Dell MRQ = 69.75
IBM MRQ= 125.05
HP MRQ = 26.55
Sprint MRQ = 107.00
Apple MRQ = 0.00
That folks, is living in fear.
Worst Buy?
Diversify.
That is the operative word here. There is such a thing as spreading oneself too thin.
In this current economic climate, Covey’s words are apropos; “… being in the thick of thin things”, is not where you want to be right now.
You know who’s not in that state? Peter Oppenheimer, that’s who. And I’m sure he’s grateful for his charts. They have served him well.
Based on personal experience, I don’t think much of BB. A new one just opened in my area (the first), and I went to the grand opening with coupons in hand to spend some money on a Blu-ray player. They did not have the recently-released model I was looking for. They only had a few older model BD players, which are more expensive and have less features than the newer ones. So I went across town to Circuit City and spent my money there (too little too late I guess). Hard to do business when you don’t have the products people want to buy.
I hate Worst Buy. Everything is super inflated. The internet retailers are eating them alive.
The retail environment is lousy for BB, because Circuit City is going to have a firesale on big ticket items like HDTVs.
@G4Dualie
You are a gas guzzling putz. There, I said it.
Yeah, but you want me. G’head admit it. It’s okay…