Electronics retailer Best Buy Co., Inc. (BBY) on Tuesday said it has lifted forecast for fiscal 2018 after reporting higher results in its second quarter, above analysts’ estimates, on higher-than-expected comparable sales. For the third quarter, the company projects earnings and revenues above market view.
In pre-market activity on the NYSE, Best Buy shares were gaining 4.8 percent to trade at $65.45.
Best Buy CFO Corie Barry said, “This updated guidance reflects stronger-than-originally-expected second half revenue performance with profitability roughly in line with our previous expectations. The increased topline expectations are being driven by the anticipation of continued positive industry and consumer momentum, coupled with the impact of product launches.”
For the third quarter, the company expects adjusted earnings per share of $0.75 to $0.803 and enterprise revenue of $9.3 billion to $9.4 billion.
On average, analysts polled by Thomson Reuters expect earnings of $0.65 per share on revenues of $8.99 billion for the quarter. Analysts’ estimates typically exclude special items.
The company expects enterprise comparable sales growth of 4.5 percent to 5.5 percent for the quarter, reflecting Domestic comparable sales growth of 4.5 percent to 5.5 percent and International comparable sales change of flat to 3.0 percent.
For the 53-week fiscal 2018, the company now expects enterprise revenue growth of approximately 4 percent, and adjusted operating income growth rate of 4 percent to 9 percent.
Previously, the company expected full-year revenue growth of approximately 2.5 percent and adjusted operating income growth of 3.5 percent to 8.5 percent.
On a 52-week basis, Enterprise revenue growth is expected to be approximately 2.5 percent and adjusted operating income growth rate of 2 percent to 6 percent.
For the second quarter, net earnings increased to $209 million from last year’s $198 million. Earnings per share were $0.67, compared to $0.61 a year ago. The prior year’s earnings from continuing operations were $182 million or $0.56 per share.
Adjusted earnings per share from continuing operations were $0.69, compared to $0.57 last year. Operating margin improved to 3.6 percent from 3.4 percent last year.
Enterprise revenues for the quarter increased to $8.94 billion from prior year’s $8.53 billion. Analysts expected earnings of $0.63 per share on revenues of $8.66 billion for the quarter.
Enterprise comparable sales grew 5.4 percent in the quarter on top of a…