Best Buy surprises with solid figures, but the share shows weaknesses. The electronics retailer Best Buy $BBY (-0,85%) presented a quarterly result in pre-market trading on Tuesday that surprised many market observers. With adjusted earnings of 2.58 dollars per share, the company exceeded Wall Street's expectations of 2.40 dollars. But appearances are deceptive: domestic sales fell to 12.72 billion dollars, compared to 13.41 billion dollars in the previous year. Internationally, there was also a slight decline to 1.23 billion dollars. Despite the positive profit, the market appears to be skeptical about Best Buy's future. Investors are wondering whether the company can survive in an increasingly challenging market environment.
In the USA, Plug Power pulls the emergency brake and announces a comprehensive restructuring plan. Plug Power $PLUG (-0,4%) unveiled its "Quantum Leap" project on Tuesday, which aims to improve the company's financial health. CEO Andy Marsh explained that further measures are necessary in view of the current market conditions. The plan includes redundancies and savings to optimize operations. This includes consolidating production facilities and reducing the workforce. The share price initially fell by almost 9 %, but then recovered and recently rose by 4.5 %. Nevertheless, the share has lost around 60 % of its value in the last 12 months. The challenges are therefore great and the road to stabilization will be anything but easy.
Sources:
https://finance.yahoo.com/m/416011a2-b583-3362-94b2-7bd547932b62/best-buy-reports.html
https://finance.yahoo.com/news/plug-power-announces-restructuring-plan-153055653.html