Best Buy Co Inc NYSE:BBY stock is soaring over 13% on Thursday morning in pre-market trading. The leading electronics retailer in the United States posted a 1.6% rise in comparable-store sales. Nintendo Co.’s Switch console was attributed to a major rise in the company’s sales.
Analysts predicted a comparable-store sales decline.
“Our revenue was higher due to strong performance in gaming,” said CEO Hubert Joly. Earnings, excluding some items, rose to $0.60 a share, up 40% on the quarter. Wall Street pegged the company’s earnings at $0.40.
Best Buy Co Inc NYSE:BBY Predicts Another Strong Quarter
The retailer predicts another strong quarter for the current quarter, with revenue forecasts of $8.6 billion to $8.7 billion and comparable-sales growth of 1.5% – 2.5% expected. Analysts predict the company will post $8.48 billion in revenue.
Earnings for the current quarter will be between $0.57 and $0.62 a share, with analysts predicting earnings to be $0.59 a share excluding items.
The company’s entertainment category posted the best performance since 2014, rising 11% last quarter. The company has refurbished their stores and cut costs. The CEO is planning to expand their digital business and add stores internationally to boost growth.
Joly also plans to add new services to the company’s lineup, with rumors of in-home electronics advice being added as a service.
The company’s plans to reinvigorate sales, add services and expand in the international and digital space will have an impact on short-term profits.
Net income for the retailer fell from $229 million during the same period a year prior to $188 million in the current quarter. The company’s earnings per share fell from $0.70 to $0.60 during the same time period.
Revenue reached $8.53 billion in the most recent quarter, rising 1% and beating estimates of $8.28 billion in revenue.
Best Buy Co Inc NYSE:BBY stock is up 10.70% in the trailing 30-day period and 24.25% in the past 90-day period.
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