Shares of Best Buy Col., Inc. (NYSE: BBY) dropped on Wednesday, despite a quarterly report from the electronics retailer showing strong profit in the fourth quarter due to strong sales of flat panel TVs.

Best Buy was down $1.24, or 2.52 percent, to $47.89 in afternoon trading on the New York Stock Exchange.

Best buy posted better than expected sales for the quarter. In the coming year, however, the company says it expects a lower gross profit rate on growth in sales of products with lower margins.

The Richfield-based firm posted a net income of $763 million, or $1.55 per share in the quarter ending on March 3. That was more than 18 percent higher in the same quarter last year when the firm earned $644 million, or $1.29 per share.

The firm beat the earnings expectations of $1.52 per share of analysts surveyed by Thomson financial.

Total revenue was up 21 percent to $12.9 billion. Analysts had expected $12.7 billion in sales.

Best Buy's earnings range guidance for the current fiscal year is $3.10 to $3.25 per share. That is slightly less than analysts' expectations of $3.18 per share.