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Non-Tech : BBY -Best Buy -- Ignore unavailable to you. Want to Upgrade?

To: Jim B who wrote (834)	12/14/1999 10:47:00 AM
From: Rainy_Day_Woman	Respond to of 980

earnings are announced in dec, same pattern sold yesterday looking to buy in again Best Buy's (NYSE: BBY) third quarter earnings were in line with expectations, but were dinged by a change in accounting practices. The retailer of consumer electronics also said Tuesday that it is close to wrapping up negotiations on an alliance. Shares fell 1/2 to 51 1/16 Tuesday morning. Shares have been doing well since the company beat estimates in its second quarter. Best Buy is in the final stages of negotiating a broad-based, long range, strategic alliance Chairman & CEO Richard M. Schulze stated in the press release. Net earnings of $78.4 million, or 37 cents a share were a 46 percent increase, compared to the $53.5 million, or 25 cents a share earned in last year's third quarter. For the first 9 months of fiscal 2000, net earnings increased 71 percent to $183.3 million, or 86 cents a share, compared to $107.5 million, or 52 cents a share, for the same period last year. This is the company's 10th consecutive quarter of year-over-year earnings growth exceeding 30 percent. The company said earnings were 38 cents per share before being reduced by $2 million, or one cent a share, to follow the new Securities and Exchange Commission guidance. First Call was expecting earnings of 38 cents a share. According to new guidelines announced December 8, the company must now defer revenue from the sale of extended service contracts and recognize it over the life of the contract. Best Buy clarified the accounting charge on Friday. The company also restated prior results and future estimates. For the nine-month period, earnings have been reduced by $3.4 million, or a penny a share. For last year's third quarter and year-to-date periods, earnings were reduced by $846,000 and $6.8 million, or one cent and three cents a share, respectively Despite the restatements, Best Buy reported strong revenue growth. Revenue for the third quarter increased 25 percent to $3.1 billion from $2.5 billion a year ago. Comparable store sales increased 9.2 percent for the quarter on top of the 12.2 percent increase last year. Gross profit margins improved 1.2 percent over last year's comparable period, to 19 percent, on improved margins within product categories, as well as a higher margin sales mix, the company said. Selling, general and administrative expenses increased slightly to 15.1 of sales for the quarter, due to additional employees to support sales of more complex products, and an increased rate of store expansion, the company said. It opened 22 stores during the third quarter, and plans t bring the new store count for fiscal 2000 to 44, giving Best Buy a total of 354 stores in 37 states Ticker: BBY (Nyse) Time 10:21AM Last Trade 48 3/8 Change -3 3/16 % Change -6.18 Prev Close 51 9/16 Volume 1,798,100 Open 51 1/16 Day High 51 1/16 Day Low 48 1/4 52 Wk Low 24 5/16 52 Wk High 80 1/2 EPS 1.28 P/E 40.28 Market Cap. 9,930(mil) -654(mil)

To: Jim B who wrote (834)	12/14/1999 10:53:00 AM
From: Platter	Read Replies (2) \| Respond to of 980

Jim, see item From Briefing.com...10:13 ET Best Buy (BBY) 48 13/16 -2 3/4: Company trading down after missing earnings this morning. In an intraday note, Merrill Lynch reduces FY00 EPS estimate to $1.62 from $1.65, but says that this reduction reflects an accounting change, not a change in fundamentals. Merrill notes that most of BBY's sales come in Q4 and that the indication of an imminent announcement regarding an ISP alliance is a "highly positive" development for BBY. --------------------------------------------------------------------------------