Strong sales of big screen televisions and mobile phones during the holiday shopping season helped Best Buy post a better-than-expected profit in the fourth quarter, though revenue missed estimates. Leah Duncan reports.
Strong sales of big screen TVs and mobile phones during the holiday shopping season helped Best Buy post a better-than-expected profit in the fourth quarter… though revenue did miss estimates Best buy also announced plans to boost its quarterly dividend and issued a special one-time dividend of $0.51 per share related to proceeds from a lawsuit settlement. CEO Hubert Joly said "Today's announcement demonstrates our commitment to returning excess capital to our shareholders, while preserving our strong balance sheet and the ability to continue to invest in the growth of our business." The stock jumped four percent in early trading on the news. Best Buy also said it will buy back $1 billion of shares over three years-- its first share buyback in several years. Best Buy said same-store sales climbed almost three percent in the U-S - the second straight quarter of growth. The company said it plans to launch a new cost savings plan in fiscal year 2016... with that plan Joly is looking to save $400 million over three years. Goldman Sachs analyst Matt Fassler said he's encouraged by Best Buy's new cost-cutting effort.