Best Buy Stock Surges On Better Than Estimated Q2 Results

Investors greeted Best Buy Co., Inc.

for delivering better than estimated earnings results for the second quarter. The company offered an upbeat forecast for the third quarter sending the stock more than ten percent higher in the pre-market trading on Tuesday. The retailer reported GAAP EPS from continuing operations of $0.56 representing an increase of 22 percent from $0.46 in the same period last year. Its adjusted EPS from continuing operations were $0.57, up 16 percent from $0.49 in the year-ago quarter. Best Buy generated revenue of $8.53 billion and came in higher than the analysts' predictions of $8.4 billion. Its chairman and CEO, Hubert Joly, said, "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." Going forward, the retailer expects adjusted EPS to be $0.43 - $0.47 on revenue of $8.8 - $8.9 billion for the third quarter. The company sees domestic comparable store sales to witness one percent growth. Street analysts' are looking for an EPS of $0.45 on revenue of $8.77 billion. Following the news, the stock jumped $4.61, or 14.18 percent, to $37.41, in the pre-market trading on Tuesday.