Best Buy beats on earnings and revenue
The company reported earnings results on Tuesday.
Best Buy slipped in premarket trading after it reported earnings results that beat Wall Street expectations and raised its guidance, a sign customers still have an appetite for big-ticket electronics amid worries about conusmer sentiment.
The company reported $9.67 billion in sales, compared to the $9.57 billion analysts polled by FactSet were expecting. It also reported same store sales growth of 2.7%, compared to the 1.5% growth analysts were penciling in for that key metric.
The company reported adjusted earnings per share of $1.40, compared to the $1.31 analyst consensus.
Best Buy also slightly raised its full-year guidance.
It now expects full year sales to hit up to $41.95 billion, compared to its prior ceiling of $41.9 billion. It expects comparable sales to grow by up to 1.2%, compared to it prior guidance of up to 1% growth. It expects full year adjusted earnings per share to hit up to $6.35, up from a top end of $6.30.
“We are flexing the unique strength of our model as customers need to upgrade or replace their consumer electronics and new products and innovation are coming to market,” Best Buy CEO Corie Barry said in a statement.
Best Buy's results come after several of its peers have reported mixed results, providing a hazy picture of the American consumer at a time when economists and investors are growing concerned they're tightening their purse strings.
Walmart, the country's largest retailer, reported sales results that beat Wall Street estimates. Other retailers like Target and Home Depot have said consumers are more cautious.
