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Best Buy (BBY) Soars Following Surprisingly Strong Q1 Results and Outlook

Shares of Best Buy ( BBY ) are rallying sharply in early going Tuesday after posting stronger-than-expected first-quarter results and a solid sales outlook.

The electronics retailer reported diluted earnings per share fell 3% from last year to $0.35, which topped the Wall Street consensus of $0.33.

Revenue for the quarter rose 1% from last year to $10.94 billion, beating the consensus estimate of $10.7 billion.

Domestic comparable store sales fell 2.4% in the quarter, while international comps rose 0.4%. For the total company, comps fell 1.7%.

In the quarter, the company reported strong mobile phone comparable store sales growth of 28%. Best Buy also noted domestic online revenue grew 12%.

Best Buy repurchased 16.6 million shares in the quarter for a total of $505 million.

"We're pleased that our actions improved sales trends within the quarter, with continued double-digit growth online and strong growth of mobile phones and connections," stated CEO Brian Dunn. "We also made progress on our goal of enhancing returns by continuing strong share repurchasing activity."

Best Buy reiterated its fiscal 2012 earnings outlook of $3.30 to $3.55 per share on an adjusted basis. The company now sees revenue toward the higher end of its previously-guided range of $51 to $52.5 billion.

Wall Street, on average, is looking for 2012 EPS of $3.46 and revenue of $51.78 billion.

Shares of Best Buy last traded at $30.51, up 5.8% from Monday's close.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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