Best Buy (BBY) beat Wall Street’s expectations for Q1. But shares dropped 4.8% today. Why?
Perhaps because Best Buy maintained — but didn’t raise — its full-year guidance, despite its Q1 beat. (Profit guidance above consensus, revenue below consensus.)
Is that because gloomier times are ahead? We see how you might get that impression by reading this quote from CFO Jim Muehlbauer, included in the company’s earnings release:
“It is very early in what we still expect to be a volatile year for the consumer. While the challenges in the external environment will continue to make consumer spending difficult to predict, we are very encouraged by the local growth plans we’ve developed to serve our customers both today and into the future.”
Then again, that’s not the gloomiest prediction we’ve heard recently, so maybe there’s something else throwing off the Street.