The company announced earnings of 70 cents per share on $8.44 billion in revenues while analyst were looking for 35 cents on $8.29 billion in revenues. Net revenue of $8.44 billion also topped the Street’s $8.29-billion forecast.
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Chief strategic growth officer Corie Barry will become CFO, and the chief administrative officer duties will be split up.
The stock increased 2.01% or $0.65 during the last trading session, hitting $32.99.
The “first quarter represents less than 15% of full year earnings”, Best Buy Chief Executive Hubert Joly said in prepared remarks, “and at this stage we have no new material information as it relates to product launches throughout the year”.
In its first quarter earnings release filed Tuesday morning, Best Buy, No. 12 in the Internet Retailer 2016 Top 500 Guide, reported domestic comparable online sales growth of 23.9% during Q1 2017 compared with 5.3% growth a year ago. On average, analysts forecast that Best Buy Co will post $2.88 EPS for the current year. Revenue totaled $8.44 billion, down from $8.56 billion a year ago but exceeding the FactSet consensus of $8.29 billion. The technology retailer reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.34 by $0.10.
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McCollam said she expects slight declines in revenue in the first half of the fiscal year, followed by growth in the back half. McCollam will remain with the company in an advisory capacity until the end of the fiscal year, January 28, 2017, to ensure a seamless transition. These segments helped to offset the continued decline in mobile phones and tablets, he said. The shares had gained 8.4 percent this year through Monday. At Best Buy, McCollam has spearheaded efforts to improve the chain’s customer service and online operations while also selling off foreign divisions and overseeing more than $1 billion in cost cuts. Best Buy shares are up 8.4% for the year so far, but down 3.9% for the past year. Best Buy cited wearable electronics, appliances and home-theater gear as driving revenue. For the quarter ending Oct-16, 18 analysts have a mean sales target of 8,794.12 million whilst for the year ending Jan-16, 21 analysts have a mean target of 39,512.20 million.
