U.S. electronics chain Best Buy Co Inc
The company, whose shares fell 1.3 percent in premarket trading, attributed the gains to strong demand for such devices as notebook computers and mobile phones. Domestic and international same-store sales in the month rose 9.3 percent and 3.5 percent, respectively.
FTN Equity Capital Markets analyst Anthony Chukumba, who has a buy rating on the stock, called the results strong but said investors were likely hoping for better.
I don't see much to poke holes in terms of these numbers, Chukumba said.
Given the fact that yesterday you had all kinds of different retailers report better-than-expected December sales results and increase their guidance, I think people might have been expecting the same from Best Buy and may be a little bit disappointed that that did not turn out to be the case, he added.
On Thursday, U.S. retailers tracked by Thomson Reuters posted better-than-expected December sales and many raised profit forecasts as they benefited from a late holiday shopping surge and discounts that were more modest than a year ago.
Best Buy still expects 2010 revenue and diluted earnings within previously announced guidance ranges. On December 15, Best Buy said it expected 2010 earnings in the range of $3.00 to $3.15 a share excluding items.
The company is scheduled to report fourth-quarter results and provide its initial 2011 earnings and new-store opening forecast on March 25.
Best Buy credited the strong domestic results, including market-share gains, to a 28.5 percent same-store sales increase in the home office category, driven by demand for notebook computers and mobile phones. The appliance category saw same-store sales rise 16.2 percent.
Its shares fell 54 cents to $41.
(Reporting by Ben Klayman; Editing by Derek Caney, Dave Zimmerman)