Best Buy (NYSE:BBY) Crushed on Poor Quarterly Results, Outlook

Best Buy (NYSE:BBY) is getting hammered today on their quarterly earnings report, which showed tremendous weakness during the most important retail season of the year.

Even worse, it looks like there's no catalyst that will change their Christmas season sales.

Revenue for the quarter came in at $12.5 billion, generating anemic earnings of $217 million, or 54 cents a share. Analysts has been looking for 60 cents a share, implying huge discounting as their tool of choice during the holidays.

This makes one wonder what the company was thinking when it asserted they had increased gross margins during the quarter.

Same-store sales were also a disaster, dropping 3.3 percent from the same quarter last year, and down 5 percent in the United States.

Best Buy also downwardly revised their EPS estimates for the full year, decreasing them from a range of $3.55 to $3.70 to to a range of $3.20 to $3.40.

Inventory also soared by 12 percent, painting a bleak picture.

Even with low valuation, the lack of catalysts make the outlook dismal for Best Buy, and will probably continue to drop in price.

Best Buy was trading at $35.29, down $6.41, or 15.37 percent, as of 2:12 PM EST.