Best Buy boosts profit forecast after sales beat
Nov 20 (Reuters) - Best Buy Co Inc raised its full-year earnings forecast on Tuesday after it sold more mobile phones, home theater systems and gaming consoles in the third quarter, helping it top Wall Street sales estimates.
Best Buy said on Tuesday sales at U.S. stores open for at least 14 months climbed 4.3 percent in the three months ended Nov. 3. Analysts on average had expected a 3.7 percent rise, according to IBES data from Refinitiv.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBY | BEST BUY CO. INC. | 90.00 | +1.83 | +2.08% |
Amid brutal competition from Amazon and other online stores, Best Buy has been bolstering its own website while also touting services such as "Geek Squad" which provide tech support and advice on setting up smart homes.
The Richfield, Minnesota-headquartered company now expects full-year adjusted earnings of between $5.09 and $5.19 per share, compared with an earlier projection of $4.95 to $5.10 per share.
Third-quarter net income surged to $277 million from $239 million a year earlier, while total revenue reached $9.59 billion, rising 2.9 percent year-over-year. Excluding one-time items, Best Buy earned 93 cents per share.
Analysts had expected earnings of 85 cents per share and revenue of $9.57 billion.
Best Buy's shares, which have fallen about 9 percent this year, rose 0.5 percent to $62.50 before the opening bell on Tuesday. (Reporting by Uday Sampath in Bengaluru; Editing by Sai Sachin Ravikumar)