Best Buy Co., Inc. (BBY - Free Report) , the specialty retailer of consumer electronics, came out with second-quarter fiscal 2018 results, wherein adjusted earnings from continuing operations came in at 69 cents per share that outpaced the Zacks Consensus Estimate of 63 cents. Also, it increased over 21% from the prior-year quarter.
Including one-time items from continuing operations, quarterly earnings came in at 67 cents per share, up 19.6% from 56 cents delivered in the year-ago quarter.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2018 has increased by a penny in the last seven days. In the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of about 33.8%.
Revenues: Best Buy generated total revenue of $8,940 million, up 4.8% from the year-ago period and also came ahead of the Zacks Consensus Estimate of $8,661 million. Further, Enterprise comparable-store sales (comps) grew 5.4%.
Outlook: Best Buy updated its guidance for fiscal 2018 (comprising 53 weeks). Management projects Enterprise revenue to rise nearly 4% versus 2.5% guided earlier. Further, on 52-weeks basis, the same is expected to rise 2.5% year-over-year.
For the third quarter of fiscal 2018, Enterprise revenue is anticipated in the band of $9.3-$9.4 billion. Further, both the Enterprise and Domestic comps are expected to grow in the range of 4.5–5.5%. However, International comps are projected in the band of flat to up 3%. Moreover, adjusted earnings per share for the fiscal third quarter are anticipated in the range of 75-80 cents. The Zacks Consensus Estimate is pegged at 64 cents.
Key Events: During the fiscal second quarter, Best Buy returned approximately $501 million via share repurchases and dividends. Moreover, it declared to buy back $3 billion of shares in the next two-year period.
Zacks Rank: Currently, Best Buy carries a Zacks Rank #2 (Buy), which is subject to change following the earnings announcement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Best Buy’s shares are up nearly 4% during the pre-market trading hours.
Check back later for our full write up on Best Buy’s earnings report!
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>