Best Buy (NYSE: BBY), the US consumer-electronics retailer, saw its shares jump in early trading today after it beat second-quarter earnings forecasts and lifted its full-year guidance, with management citing a surge in computing demand as the key driver of growth.
The stock traded at $87.44 in pre-market dealing, up 2.52% from yesterday’s close of $85.29 and within reach of its 52-week high of $91.27.
Best Buy reported fiscal second-quarter adjusted earnings per share of $1.47, ahead of the $1.38 expected, on revenue of $9.78 billion versus $9.59 billion forecast. Comparable sales, a measure of sales at stores open at least a year, grew 4.1%, far outstripping the company’s own prior guidance of around 1%. Net income rose to $315 million, or $1.48 a share, from $186 million, or $0.87 a share, a year earlier.
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The company raised its full-year revenue guidance to $42.3bn-$42.8bn from $41.2bn-$42.1bn, comparable sales guidance to growth of 1.9%-3% from a prior range of -1% to +1%, and adjusted earnings guidance to $6.70-$6.90 a share from $6.30-$6.60. Growth was broad across categories, but management singled out computing as the standout driver, coming in stronger than the company had expected.
Incoming chief executive Jason Bonfig, who takes over from Corie Barry on 1 November, said: “The strength of our Q2 results reflects both the deliberate actions we have taken to position the business for growth and a healthy demand environment for our category.”
Rising memory-chip prices and tariffs remain flagged as headwinds for the retailer’s margins heading into the holiday quarter, even as the topline outlook improves.
