Best Buy's Stock Soars Toward 10-month High After Profit, Sales Beat Expectations
Shares of Best Buy Co. Inc. soared 15% toward a 10-month high in premarket trade Tuesday, after the consumer electronics retailer reported fiscal second-quarter results that beat expectations, including a surprise rise in same-store sales. For the quarter ended July 30, earnings rose to $198 million, or 61 cents a share, from $164 million, or 46 cents a share, in the same period a year ago. Excluding non-recurring items, such as discontinued operations, adjusted earnings per share came to 57 cents, above the FactSet consensus of 43 cents. Revenue inched up to $8.533 billion from $8.528 billion, beating the FactSet consensus of $8.392 billion, with domestic and international revenue both topping expectations. Same-store sales increased 0.8%, compared with the FactSet consensus of a 0.4% decline. "We saw continued positive momentum in our online sales - delivering a second straight quarter of nearly 24% growth," said Chief Executive Hubert Joly. Looking ahead, the company expects third-quarter adjusted EPS of 43 cents to 47 cents, surrounding the FactSet consensus of 45 cents. The stock had climbed 7.7% year to date through Monday, while the S&P 500 had gained 6.8%.
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