Best Buy’s online sales growth of 24 percent was also “impressive”, O’Shea said.
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Joly sold that stock at $32.24 a share – 18% below the level where Best Buy’s shares are set to open on Tuesday. The company had projected same-store sales roughly flat with the year-ago second quarter while analysts polled by Consensus Metrix had expected a 0.6% decline.
In this Tuesday, Feb. 9, 2016, file photo, a shopper carts his purchased LED TV at a Best Buy in Miami.
“We are encouraged by the quality of our execution, the momentum in our business and the strength of our first-half financial results”, Best Buy CEO Hubert Joly said in a statement.
Investors piled into Best Buy shares after the big-box chain soared past expectations on earnings and profit, potentially scrambling the conventional wisdom on the outlook for electronics sales.
The company even managed to eke out a sales gain last quarter, helped by rising demand for wearable technology, appliances and home-theater gear.
Total revenue slightly rose to $8.53 billion in the second quarter ended July 30, snapping a three-quarter streak of declines. Eight analysts surveyed by Zacks expected $8.4 billion. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 42 cents per share.
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The company said it expects revenue in the range of $8.8 billion to $8.9 billion for the fiscal third quarter. Revenue inched up to $8.533 billion from $8.528 billion, beating the FactSet consensus of $8.392 billion, with domestic and worldwide revenue both topping expectations.
