Best Buy Co Inc. (NYSE: BBY) shares fell 8 percent on Tuesday after the company forecast the fiscal 2021 earnings below analysts’ estimates.
The consumer electronics company released its financial targets for fiscal 2021 on Tuesday. Revenue is expected to grow to $43 billion in fiscal 2021, up from $39.4 billion in fiscal 2017. The company also forecast adjusted earnings of $4.75 to $5.00 per share. Analysts polled by Thomson Reuters has estimates earnings of $4.97 per share.
In addition, Best Buy estimates its adjusted operating income in fiscal 2021 will be between $1.9 billion to $2.0 billion.
Investors are not happy with the projection. Best Buy shares drop as much as 8 percent to $52.76 on Tuesday.
"Our Renew Blue transformation was about improving the customer experience and fixing what was broken," Best Buy Chairman and CEO Hubert Joly said. "Building on what we have accomplished, we are excited by the opportunities we have in this next chapter to grow the company by helping customers pursue their passions and enrich their lives with the help of technology, which is a much bigger idea and one that is rich with opportunities."
24 May, 2018