Ticker Shock: Goldman, Best Buy Still Best-in-Breeds; GE to Power Iraq
Tuesday's top stories and stocks with potential to move.
Asian markets were a mixed bag overnight. The Hang Seng was up less than 1%, while the Nikkei was down a little more than 1%. Meanwhile, earlier this morning, Europe was in positive territory. And here in the US, we're trading higher.
Best Buy (BBY)
The well-known electronics chain offered up its third-quarter numbers, with an adjusted profit of $0.35 per share. At first blush, that tidbit seemed like good news, because the estimate I'm seeing is for $0.24.
However, the chain also offered up what I would characterize as a fairly bleak assessment of the current economic environment:
"The historic slowdown in the economy and its effect on our business over the past 90 days have been the most challenging consumer environment our company has ever faced. We believe that there has been a dramatic and potentially long-lasting change in consumer behavior as people adjust to the new realities of the marketplace."
As a result, the company is reportedly offering buyouts to employees.
Best Buy did say that, excluding a charge, it's looking for $2.30 to $2.90 per share in fiscal 2009. The estimate I'm seeing is $2.51 a share.
I wasn't exactly left with a warm and fuzzy feeling after seeing this release. However, in spite of the doom and gloom, the firm is still expecting some pretty good numbers. For a stock that closed at under $24 last night , it did catch my eye.
Long story short, I am bullish on this story longer term.
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