Best Buy posts EPS of 49 cents, ex-items, vs. 34 cents a share estimate

Best Buy powers up on earnings news
Best Buy powers up on earnings news

Best Buy delivered quarterly earnings and revenue that topped analysts' expectations on Tuesday.

The electronics retailer posted second-quarter earnings of 49 per share, up from 44 cents a share in the year-earlier period.

While the company's net revenue beat expectations, it fell on an absolute basis to $8.53 billion from $8.896 billion a year ago. Excluding discontinued operations in China, revenue rose from $8.459 billion on a year-over-year basis.

Analysts polled by Thomson Reuters expected the company to post earnings per share of 34 cents on revenue of $8.29 billion.

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"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," company CEO Hubert Joly said in the release.

The company also saw same-store sales rise by 2.7 percent last quarter and said its domestic revenue grew by 3.9 percent, compared to last year.

Still, Best Buy said its international revenue dropped by 25.6 percent year-over year due to consolidation of its Canadian brand, currency headwinds and "softness in the Canadian consumer electronics industry."

Best Buy shares rose sharply after the earnings report came out and held about 11 percent higher in the premarket trading.

Best Buy's shares have fallen significantly this year, having dropped over 20 percent year-to-date.

For the first quarter of 2015, the retailer reported quarterly earnings and revenue that topped expectations, helped by strong demand for large-screen TVs, smartphones and appliances.

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