Best Buy Co. Inc.’s stock is on track for its best day since 2017, highlighting a busy slate of morning earnings that’s produced several double-digit movers.
The electronics retailer reported better-than-expected results for the holiday period, but what stands out is how the company is treating its shareholders. Best Buy BBY, +15.83% announced Wednesday that it would be raising its quarterly dividend by 11%, to 50 cents per share, and the company also received approval for a new $3 billion buyback program. It plans to spend $750 million to $1 billion on share repurchases this fiscal year.
Its stock is up more than 15% in morning trading.
Other notable reports
•Steve Madden Ltd. SHOO, +4.56% delivered a disappointing forecast for the year ahead, but investors seem to be paying more attention to the company’s holiday-quarter earnings beat. The company’s downbeat outlook reflects the loss of Payless ShoeSource, which is closing its U.S. stores. Steve Madden will have to find ways to compensate for the absence of what Chief Executive Edward Rosenfeld called a “meaningful customer” in recent years. The stock is up 5.6%.
•Shares of Dean Foods Co. DF, -15.38% are plunging in morning trading after the dairy company suspended its dividend in conjunction with an earnings report that “missed by a mile,” according to Bernstein’s Alexia Howard. She questions whether the company, which is also conducting a strategic review of its business, will be able to attract bids amid “deteriorating business fundamentals.”
•Chesapeake Energy Corp.’s CHK, +7.73% stock is up nearly 10% Wednesday, and SunTrust Robinson Humphrey analyst Neal Dingmann thinks investors are encouraged by the company’s upbeat projection for 2019 production. The company’s capital-expenditure forecast was also encouraging.
•TJX Cos. TJX, +1.11% posted another beat on same-store sales, suggesting to Bernstein’s Jamie Merriman that the off-price concept is still gaining market share.
•Campbell Soup Co. CPB, +6.11% said it was “on track” with efforts to cut costs and reinvigorate its core business. Shares are up 6% in Wednesday’s session.
Coming up this afternoon
Fitbit Inc.’s FIT, +2.87% holiday sales will be in focus this afternoon, but investors have also become increasingly concerned with another aspect of Fitbit’s business, one the company hasn’t shared much about. The wearables pioneer has been trying to move beyond device sales by generating recurring services revenue from the health-care industry, and Chief Executive James Park said that the company would start providing more information about this area of the business in 2019.
Also on deck is Square Inc.’s SQ, +0.10% first earnings report since Chief Financial Officer Amrita Ahuja moved into her new role. HP Inc. HP, +1.49% Box Inc. BOX, +0.08% Booking Holdings Inc. BKNG, -0.17% and L Brands Inc. LB, -0.55% are on the afternoon docket as well.
