Best Buy Beats Earnings, But Stock Drops on Priced-In Expectations
Best Buy (BBY) stock dropped around 3% in premarket trading on Thursday, despite beating earnings expectations for its fiscal second quarter.
The electronics retailer reported adjusted EPS of $1.47 per share, surpassing the Wall Street consensus estimate of $1.39, and revenue rose to nearly $9.8 billion from $9.4 billion in the same period last year.
Comparable sales grew 4.1%, more than double the growth rate from the prior year, with stronger demand seen in gaming consoles and cell phones helping pick up the slack in appliance sales, which were impacted by a slow housing market.
The company raised its full-year adjusted EPS guidance to a range of $6.70 to $6.90, above the $6.62 analyst consensus tracked by FactSet, and lifted its revenue forecast to $42.3 billion to $42.8 billion.