Best Buy Beats Q2 Estimates, Shares Surge

Shares of Best Buy Co Inc BBY jumped more than 11 percent in pre-market trading after the company reported stronger-than-expected results for its fiscal second quarter. The Richfield, Minnesota-based company reported quarterly net income of $164 million, or $0.46 per share, up from $146 million, or $0.42 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings came in at $0.49 per share. Its revenue surged to $8.53 billion from $8.46 billion. However, analysts were expecting a profit of $0.34 per share on revenue of $8.29 billion. The average estimate among 39 Estimize users was for earnings of $0.35 per share and revenue of $8.32 billion. U.S. sales increased 3.9 percent to $7.9 billion in the recent quarter, while international revenue dipped 25.6 percent to $650 million. Its same-store sales surged 3.8 percent in the quarter, while domestic same-store sales gained 2.7 percent. Domestic gross profit rate widened to 24.7 percent from 23.4 percent, while international gross profit rate increased to 23.4 percent from 22.9 percent. During the quarter, Best Buy repurchased a total of 9.4 million shares of its common stock for $321 million. Hubert Joly, Best Buy chairman and CEO, said, "We believe these better-than-expected second quarter results are affirmation that our strategy of offering advice, service and convenience at competitive prices is paying off." Joly added, "As we look forward, while we are cognizant of the recent financial market turbulence, we believe the combination of an opportunity-rich environment and the strength of our competitive advantages leads us to have a positive outlook about our future prospects, starting with the important back-to-school third quarter." Best Buy shares jumped 11.72 percent to $32.70 in pre-market trading.