Best Buy Shares Explode Higher, Up 15% on Mega Earnings Beat

Electronics retailer Best Buy Co Inc (NYSE:BBY) shares are flying higher in premarket trading today, up nearly 15% following a blockbuster earnings beat and raised guidance.

The Richfield, MN-based company reported Q2 adjusted net income of $0.57 per share, easily beating Wall Street’s estimates of $0.43. Revenue rose slightly from last year to $8.53 billion, also exceeding analysts’ view of $8.39 billion.

Same-store sales (comparable sales) rose 0.8% in Q2. BBY had expected flat comps in the period.

Looking ahead, Best Buy forecast Q3 EPS of $0.43 to $0.47, which straddles Wall Street’s estimate of $0.45. Revenue is expected to range from $8.8 to $8.9 billion, versus analysts’ view for $8.77 billion.

From the press release:

“Our teams delivered a strong second quarter, with better-than-expected revenue and profitability in both our Domestic and International businesses,” said Best Buy Chairman and CEO Hubert Joly. “In our Domestic business, we are reporting comparable sales growth of 0.8% versus guidance of approximately flat. This is on top of comparable sales growth of 3.8% last year. We saw continued positive momentum in our online sales – delivering a second straight quarter of nearly 24% growth. We also continued to deliver cost savings and drive efficiencies in the business, a discipline that is critical to our ability to invest in our future.”

Joly continued, “We are encouraged by the quality of our execution, the momentum in our business and the strength of our first half financial results. We are excited by our mission to help customers live their lives and pursue their passions with the help of technology and the growth opportunities this mission creates for us. I want to thank our associates across the company for their focus and work to deliver every day on this mission.”

BBY-2016-08-23

Best Buy shares rose $4.88 (+14.88%) to $37.68 in premarket trading Tuesday. Prior to today’s report, BBY had gained 7.7% year-to-date, roughly in-line with the S&P 500 during the same period.