Best Buy Q2 Earnings Up 60%, Beat Estimates
Richfield-based Best Buy Company, Inc., on Tuesday posted better-than-expected second-quarter net earnings as sales of mobile phones, appliances, and mobile computers increased.
Net earnings for the quarter that ended August 28 increased to $254 million, or 60 cents per share, up 60 percent from $158 million, or 37 cents per share, in the same period last year.
Analysts expected the company to earn 44 cents per share, according to those polled by Thomson Reuters.
Second quarter sales increased about 3 percent to $11.34 billion, but fell short of the $11.54 billion that analysts expected. Same-store sales-sales at stores open for at least 14 months-fell 0.1 percent.
The company's U.S. segment saw a low double-digit same-store sales increase in mobile phones, a high single-digit same-store sales increase in appliances, and a mid single-digit same-store sales increase in mobile computers, which includes tablet computers.
However, these gains were more than offset by same-store sales decreases in TVs and entertainment hardware and software. Best Buy said that same-store sales decline in TVs was driven by a low double-digit decline in unit sales and moderating price declines.
As a result of the company's better-than-expected second-quarter results, it raised its full-year earnings outlook to between $3.55 and $3.70 per share, up from its prior outlook of $3.45 to $3.60 per share.
“We have focused our efforts on improving operating margins and driving profitable growth in the business and are pleased with the progress we have made fiscal year-to-date in a challenging consumer spending environment,” Jim Muehlbauer, executive vice president and chief financial officer, said in a statement.
Shares of the company's stock closed at $36.73 on Tuesday, up 6 percent.
Best Buy is Minnesota's third-largest public company based on its fiscal year 2009 revenue, which totaled $45 billion. The company reported $49.7 billion in revenue for its 2010 fiscal year.