Best Buy posts profit on cost-cutting, tax benefit

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Associated Press

Posted on May 22, 2014 at 7:00 AM

Updated Thursday, May 22 at 7:10 AM

MINNEAPOLIS (AP) — Best Buy says a big tax benefit and cost-cutting pushed it to a profit in its fiscal first quarter. But its sales fell short of expectations, sending its stock lower.

Best Buy has been dealing with increased competition from online stores, notably Amazon.com, and discounters like Wal-Mart.

The electronics seller says its net income was $461 million, or $1.31 per share. That's a turnaround from a loss of $81 million, or 24 cents per share, a year earlier.

Adjusted earnings were 33 cents per share. Analysts expected 19 cents.

Total revenue fell 3 percent to $9.04 billion from $9.35 billion. Analysts polled by FactSet expected $9.23 billion.

Revenue at stores open at least 14 months fell 1.9 percent.

Shares fell 90 cents, or 3.6 percent, to $24.45 in premarket trading.

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