Best Buy Co. Inc. (NYSE: BBY) climbed Tuesday morning after reporting earnings and revenue that beat analysts’ expectations while also raising its earnings guidance.
For the quarter ending November 2, the Minneapolis-based Best Buy said net income grew to $293 million, or $1.10 per share, from $277 million, or 99 cents per share, a year earlier.
Excluding items, Best Buy earned $1.13 per share compared with the $1.03 analysts were expecting.
Best Buy said revenue grew to $9.76 billion, from $9.59 billion, last year, and higher than the $9.70 billion analysts expected.
Sales at stores open at least 12 months rose 1.7%. Analysts were expecting a 1.3% gain.
"Our teams delivered another strong quarter of top- and bottom-line growth," Best Buy CEO Corie Barry said in the company’s release. "We are delivering on our purpose to enrich lives through technology by providing customers the products and solutions they want and need, combined with fast and convenient fulfillment."
The company raised its forecast for fiscal 2020 adjusted earnings to a range of $5.81 to $5.91 per share from a prior estimate of $5.60 to $5.75 per share. Analysts were expecting Best Buy to earn $5.74 per shares in 2020, excluding items.
Experts are saying the fourth quarter is crucial for Best Buy, like most retailers, because of the holiday season. The National Retail Federation forecasts that holiday sales during November and December will grow between 3.8% and 4.2% compared to last year’s holiday season.
Shares in BBY began Tuesday up $3.64, or 4.9%, to $77.90
