UPDATE: Best Buy Posts Upbeat Q2 Earnings, Revenue Misses View

Best Buy Co BBY reported better-than-expected earnings for the second quarter. However, the company's revenue missed analysts' estimates. The Richfield, Minnesota-based company posted quarterly adjusted earnings per share, excluding certain items, of $0.44 versus $0.32 in the year-ago period. However, analysts were expecting earnings of $0.31 per share. Its total sales dropped to $8.9 billion versus $9.27 billion, versus analysts' estimates of $8.99 billion. Best Buy's sales at stores open more than a year slipped 2.7%, versus analysts' expectations for a 2.2% drop. Its domestic revenue fell 2.1% to $7.59 billion, while domestic online revenue came in at $581 million in the quarter. Its international revenue slipped 12.1% to $1.31 billion. Hubert Joly, Best Buy president and CEO, said, "In the second quarter, we delivered $8.9 billion in revenue and $0.44 in non-GAAP diluted earnings per share versus $0.32 last year. The ongoing benefits of our Renew Blue cost reduction and other SG&A cost containment initiatives drove these better-than-expected results.” Sharon McCollam, Best Buy EVP, CAO and CFO, said, “As Hubert remarked, industry-wide sales are continuing to decline in many of the consumer electronics categories in which we compete. We are also seeing ongoing softness in the mobile phone category ahead of highly-anticipated new product launches. Therefore, absent any change in these declining industry trends and with limited visibility to new product launch quantities, we continue to expect comparable sales to decline in the low-single digits in both the third and fourth quarters. Best Buy shares fell 0.50% to $31.83 in pre-market trading.