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Best Buy Tops Q3 Estimates and Raises Outlook on Tech Upgrade Demand

Tech-refresh demand lifted comparable sales, setting up a firmer holiday outlook.

Overview

  • Adjusted EPS reached $1.40 versus the $1.31 consensus, on revenue of $9.67 billion versus $9.59 billion expected.
  • Comparable sales rose 2.7% year over year, including U.S. growth of 2.4%, online growth of 3.5%, and international growth of 6.3%.
  • Full-year guidance increased to revenue of $41.65 billion to $41.95 billion and adjusted EPS of $6.25 to $6.35, with comps now forecast to rise 0.5% to 1.2%.
  • Net income fell to $140 million, or $0.66 per share, from $273 million, or $1.26 per share, a year earlier.
  • Management cited strength in computing, gaming and mobile devices, and shares climbed about 3% in premarket trading.