Tech Industry

Investors sell Best Buy shares on good news

Electronics and computer retailer Best Buy lost 9 3/16, or 13 percent, to 61 13/16 Thursday even though it said its second-quarter sales improved 18 percent to $3.17 billion.

Company officials said sales of digital cameras, DVD players and other digital equipment were especially strong.

That didn't stop investors from selling off Best Buy (NYSE: BBY) shares on the news.

Last quarter, Best Buy returned a profit of $72.2 million, or 34 cents a share, on sales of $2.96 billion.

It also said sales at its stores open at least a year rose 5.1 percent from the year-ago quarter.

"Comparable store sales were in line with company expectations," said CFO Allen Lenzmeier in a prepared release. "The momentum behind the digital product cycle continues to accelerate as sales of digital cameras, camcorders, cellular communication, DVD hardware and software continued their significant sales gains."

Best Buy will report its second-quarter results on Sept. 12.

First Call Corp. consensus expects Best Buy to earn 34 cents a share in the second quarter.

The company operated 373 stores at the end of the quarter as compared with 332 locations a year ago.

Its shares moved as high as 88 7/8 in March after falling to a low of 42 9/16 in December.

Fourteen of the 17 analysts following the stock rate it either a "buy" or "strong buy" recommendation.