Mainenews reporter

Best Buy shares up 15% after Q2 earnings beat

Best Buy shares up 15% after Q2 earnings beat

Electronics retailer Best Buy saw its shares surge about 15% Tuesday after the company’s second quarter earnings surpassed Wall Street expectations. The Richfield, Minn.-based retail chain reported net income of $164 million, or 46 cents per share, for the April-June 2015 period, compared to $146 million and 42 cents during the same period last year.best-buy

Earnings per share beat analysts’ estimates from Thomson Reuters of 34 cents, as did Best Buy’s Q2 revenue of $8.53 billion — analysts expected $8.39 billion. Amid the market’s rebound, Best Buy (BBY) shares were up $4.28 to $33.55 in afternoon trading. Sales of big-screen TVs, large appliances, mobile phones and health and fitness products helped offset a decline in tablet sales, the company said. Sales at U.S. stores open more than a year rose 3.8%, the fourth consecutive quarter of gains.

Another good sign in these days of consumer showrooming at brick-and-mortar retailers and then buying online: Best Buy’s online sales rose 17%. “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,” said Best Buy CEO Hubert Joly in a statement.

Acknowledging market volatility, the company forecasted third-quarter sales of flat to single-digit increases. “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,” Joly said.

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