Best Buy, Inc. (BBY) posted dismal third-quarter 2013 results. The quarterly earnings of $0.03 per share fell 94% from the year-ago quarter, and also missed the Zacks Consensus Estimate of $0.12. Total revenue also declined 3.5% to $10,753 million, while comparable-store sales fell 4.3%, reflecting a decline of 4% at Domestic segment and 5.2% at the International division.
A tough economic environment in China and weak sales in Canada were the headwinds. Best Buy also suspended its future share buyback program and abstains from providing earnings projection for fiscal 2013 due to an uncertain environment related to product launches and industry-wide sales.
We remain concerned about secular headwinds and falling comps in televisions, gaming, notebooks and digital imaging. Moreover, Best Buy's cash position has shattered, plunging 85.1% year-over-year to $309 million at the end of the quarter. Consequently, we maintain our bearish stance on the stock.
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