Shares in Best Buy Co Inc (NYSE:BBY) advanced more than 15% in Tuesday’s early deals after the US electronics retailer beat expectations with its quarterly earnings report.
Best Buy highlighted positive trends in sales of health and wearable technology as it reported a 16% rise in earnings per share to 57 cents for the three months ended August 1, versus Wall Street expectations of 43 cents.
Looking to the remainder of the year Best Buy told investors it expected full year income to show ‘low single digit percentage growth’, up from its prior to guidance for ‘approximately flat’ income.
Hubert Joly, Best Buy chief executive, said: “Our teams delivered a strong second quarter, with better-than-expected revenue and profitability in both our Domestic and International businesses.”
Significantly, Joly highlighted that for the second quarter in a row online sales were up 24%.
Best Buy shares had gained 15.88% on Tuesday Morning to changing hands just above US$38.01.