Consumer electronics retailer Best Buy (BBY) on Tuesday smashed Wall Street’s expectations for its fiscal second quarter and guided higher for the full year. BBY stock jumped in early trading.
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The Richfield, Minn.-based company earned an adjusted $2.98 a share on sales of $11.85 billion in the quarter ended July 31. Analysts had expected Best Buy to earn $1.89 a share on sales of $11.55 billion, according to FactSet. On a year-over-year basis, Best Buy earnings increased 74% while sales climbed 20%.
“We are lapping an unusual quarter last year as our stores were limited to curbside service or in-store appointments for roughly half the quarter,” because of the Covid-19 pandemic, Chief Executive Corie Barry said in a news release.
She added, “When we compare to two years ago, our results are also very strong. Compared to the second quarter of fiscal 2020, revenue is up 24% and our operating income has more than doubled.”
BBY Stock Pops On Earnings
In premarket trading on the stock market today, BBY stock surged 4.2%, near 116.90.
Best Buy’s same-store sales rose 19.6% in the second quarter. The largest sales drivers in the period were home theater, appliances, computing, mobile phones and services.
The pandemic has led to “permanent life changes, like hybrid work and streaming entertainment content,” Barry said. Consumers continue to spend on technology products that “help them work, learn, entertain, cook and connect at home.”
Best Buy Raises Outlook
For the current quarter, Best Buy forecast sales of $11.4 billion to $11.6 billion. The midpoint of $11.5 billion topped Wall Street’s consensus estimate of $10.47 billion.
For the full year, Best Buy now predicts sales of $51 billion to $52 billion. Analysts had been looking for $49.39 billion.
“For the second half of fiscal 2022, we expect our comparable sales to be in the range of flat to down 3% vs. last year, compared to our previous annual outlook that implied a high single-digit decline,” Chief Financial Officer Matt Bilunas said in a written statement.
BBY stock has been consolidating for the past 15 weeks with a buy point of 128.67, according to IBD MarketSmith charts. That buy point is 10 cents above the stock’s all-time high of 128.57, reached on May 10.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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