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Best Buy shares down premarket after second quarter results beat market expectations

Last updated: 08:17 29 Aug 2017 EDT, First published: 03:17 29 Aug 2017 EDT

Electronics shop
The biggest US electronics retailer upped its full year guidance, saying revenue is now expected to increase by about 4.0%, against an earlier target of 2.5%

Electronics retailer Best Buy Co (NYSE:BBY) reported higher than expected second quarter earnings, easily beating Wall Street expectations.

Best Buy said net earnings came in at US$209mln, or 67 US cents per share for the quarter, up from US$198mln or 61 US cents per share in the same quarter a year ago.

Adjusted earnings per share were 69 US cents in the quarter, well above the market consensus for 63 US cents.

READ: Best Buy posts unexpected rise in first-quarter sales, boosted by demand for gaming and mobile products

Revenue came in at US$8.9bn, up from US$8.5bn the year before, and again, above Wall Street’s consensus of US$8.7bn.

Same-store sales rose 5.4% in the quarter, beating market expectations for only a 2.1% rise, driven by stronger consumer demand for technology products.

Retailer ups full year guidance

Best Buy chief executive Hubert Joly said in a statement: "Against a backdrop of continued healthy consumer confidence, we believe broad-based product innovation is resonating with consumers and driving higher spend."

In addition, the biggest US electronics retailer upped its full year guidance, saying revenue is now expected to increase by about 4.0%, against an earlier target of 2.5%.

Non-GAAP operating income is expected to grow about 4.0% to 9.0%, also up from previous expectations for 3.5% to 8.5% growth.

In premarket trade, Best Buy shares eased 2.35% at US$61.00 on Tuesday.

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