Best Buy Earnings Report
Very good earnings report turns to dust after CEO makes unnecessary comment!
Traders over-react badly!
Electronics and appliance retailer Best Buy Co Inc. (NYSE:BBY), reported better-than-expected quarterly earnings and sales yesterday, helped by strong demand for smartphones, connected home and wearable devices.
Shares of Best Buy rose nearly 5% during premarket trade on Tuesday after the company reported fiscal 2018 second quarter earnings that came in above Wall Street expectations.
And then, CEO Hubert Joly made a statement warning investors on a Tuesday conference call they shouldn't consider such robust comparable sales growth to be the new normal, causing the earlier gains to reverse; ending the day down 11.95% to sit at $55.02.
Traders reacted badly to this information and decided to punish a good, sound earnings report, much to the glee of the bears.
Best of Trading,
Director of Stock Options Made Easy