Best Buy Co. Inc. (BBY - Get Report) skyrocketed Wednesday after it posted stronger-than-expected fourth quarter earnings, and forecast solid full-year profits, as softer mobile phone sales were offset by gains in wearables, appliances and gaming.
Best Buy said earnings for the three months ending in January, the company's fiscal fourth quarter, came in at $2.69 per share, up nearly 41% from the same period last year and well ahead of the Street forecast of $2.56 per share. Group revenues, Best Buys said, rose 9.77% from last year to $14.8 billion and topped the consensus forecast of $14.7 billion. Comparable U.S. sales were also much stronger-than-expected, rising 3% from last year against a 2.03% forecast.
Looking into the current fiscal year, which ends in January 2002, Best Buy said it sees enterprise revenues between $42.9 billion and $43.9 billion, modestly ahead of Street forecasts, and earnings of between $5.45 and $5.65 per share, again topping the consensus estimate from I/E/B/S Refinitiv.
"We are very proud of the financial results we have just delivered," said CEO Hubert Joly. "For the fourth quarter, we reported a 3.0% increase in our comparable sales, on top of 9.0% comparable sales growth last year. For the full year, our comparable sales grew 4.8% and our EPS increased more than 20%."
"In addition to these great financial results, we made significant progress implementing our Best Buy 2020 strategy to enrich lives through technology and further develop our competitive differentiation," he added. "We launched our Total Tech Support program, expanded our In-Home Advisor program and acquired GreatCall. I so appreciate the hard work of our associates, as well as our partners, in driving these terrific results."
Best Buy shares jumped 16.8% to $70.41 in trading Wednesday.