Best Buy's Stock Soars After Results And Profit Outlook Beat Expectations

Shares of Best Buy Co. Inc. soared 7.5% in premarket trade Thursday, after the consumer electronics retailer reported fiscal third-quarter profit and sales that beat expectations, and provided an upbeat earnings outlook. For the quarter ended Oct. 29, earnings rose to $194 million, or 61 cents a share, from $125 million, or 36 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 62 cents, beating the FactSet consensus of 47 cents. Revenue increased to $8.95 billion from $8.82 billion, above the FactSet consensus of $8.85 billion, with both domestic and international revenue exceeding expectations. Domestic same-store sales grew 1.8%, beating the FactSet consensus of 1.0% growth. For the current quarter, the company expects adjusted EPS of $1.62 to $1.67, above the FactSet consensus of $1.58. Revenue is expected to be $13.4 billion to $13.6 billion, below the FactSet consensus of $13.7 billion, with product recalls expected to lower domestic revenue by $200 million. The stock had run up 33% year to date through Wednesday, while the SPDR S&P Retail ETF has gained 4.7% and the S&P 500 has climbed 6.5%.