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Key Takeaways
- Best Buy shares rose 15% Thursday after the electronics retailer beat second-quarter estimates and lifted its profit projections for the year.
- Revenue and net income beat estimates for the quarter, despite declining comparable store sales.
- Best Buy lifted its profit projections despite expectations that comparable sales will decline amid “uneven” behavior from customers.
Best Buy (BBY) shares surged Thursday, reaching their highest point in more than two years, after its second-quarter earnings surpassed estimates and and the company said it expects to be more profitable than expected for the full fiscal year despite declining sales projections.
The electronics retailer posted better than expected net income of $291 million on total revenue of $9.29 billion, which narrowly beat estimates. CEO Corie Barry said the company saw encouraging growth in the sales of tablets and computers in the quarter, though comparable store sales declined more than 2% year over year.
Best Buy Lifts Profit Outlook Despite ‘Uneven’ Consumer Behavior
Best Buy updated its outlook for the full fiscal year Thursday, with total revenue projected between $41.3 billion to $41.9 billion, a lower top end than the previous projection of $42.6 billion.
Despite the narrowed revenue range and an updated comparable sales projection of a 1.5% to 3% decline compared to potentially flat to down 3% previously, Best Buy expects adjusted earnings per share (EPS) of $6.10 to $6.35, up from an earlier range of $5.75 to $6.20.
“We see a consumer who is seeking value and sales events, and one who is also willing to spend on high price point products when they need to or when there is new compelling technology,” Best Buy CEO Corie Barry said. “We are balancing our optimism in both the industry and our positioning with a pragmatic approach to likely uneven customer behavior going forward.”
Best Buy shares were up some 15% Thursday, reaching their highest level since early 2022.