Boston, MA 02/28/2014 (wallstreetpr) – Best Buy Co., Inc. (NYSE:BBY) was last seen going down by 0.97 percent to $25.57 on NYSE. That drop in stock value happened just when the company announced beating results for its latest quarter. At this juncture, the big question is about whether this stock is worth adding to portfolio.
The stock can be a bit perplexing in that it beats expectations and drops at the same time. However, without a doubt, the recently noted drop in the stock of the electronic giant could just be opening up a low entry point for investors. Before looking at what prospects are there or reasons to be bullish on Best Buy Co., Inc. (NYSE:BBY), let us take a look at the just released results.
Fourth quarter results
Best Buy Co., Inc. (NYSE:BBY) announced its fiscal 2014 fourth quarter results which showed that the company generated revenue of $14.47 billion and attained adjusted earnings of $549 million in the three months period ending February 1.
It was easy to see from the results that domestic revenue and comparable store sales columns did not hold up, thus falling 1.8 and 1.2 percent respectively. However, online sales continued to show compelling strength.
Looking at the stock of Best Buy Co., Inc. (NYSE:BBY), there is no doubt that the company has a lot of strengths, and thus there are good reasons to buy.
Improving Income
Best Buy Co., Inc. (NYSE:BBY) announced net income of $293 million, reflecting 83 cents in the just reported quarter. That compared with $409 million loss or $1.21 per share that was noted in the corresponding quarter a year ago. The adjusted earnings per share in the latest quarter were $1.24 per share, beating the $1.01 per share estimate of Wall Street.
Strengthening online sales
Although Best Buy Co., Inc. (NYSE:BBY) noted a sales decline in domestic business segment, comp online sales were significantly up. That online column was up 25.8 percent to $1.57 billion, thus confirming that the future of the store is unfolding perfectly.
Sealing loss loopholes
Best Buy Co., Inc. (NYSE:BBY) announced further job-cuts. The company has identified job reduction as an important strategy to trim its losses and this is expected to result in significant cost saving going forward.
