Best Buy Co. (BBY) - Get Report posted better-than-expected third quarter earnings Tuesday, while boosting its full-year profit guidance, and said it will launch a next-day delivery service for the coming holiday shopping season.
Best Buy said non-GAAP earnings for the three months ending on November 2 came in at $1.13 per share, up 21.5% from the same period last year and 10 cents ahead of the Street consensus forecast, Group revenues, Best Buy said, rose just under 2% to $9.76 billion and again topped analysts' estimates of a $9.71 billion tally. Same store sales rose 1.7%, Best Buy said, 30 basis points better than analysts' forecasts.
The group said it sees full year non-GAAP earnings in the region of $5.81 to $5.91 per share, up from its prior outlook of $5.60 to $5.75 per share, while nudging the lower-end of its enterprise revenue forecast to $43.1 billion while holding the upper end in place at $43.6 billion.
"Our teams delivered another strong quarter of top- and bottom-line growth," said CEO Corie Barry "We are delivering on our purpose to enrich lives through technology by providing customers the products and solutions they want and need, combined with fast and convenient fulfillment."
"In the near term, we are excited about our holiday plans. Our teams have once again put together a best-in-class assortment, prepared an amazing set of deals and ensured we have great inventory availability," she added. "Customers ordering online will get free next-day delivery on thousands of items all season long with no membership or minimum purchase required. They can also choose to pick up their products in a store within an hour of placing their order."
Best Buy shares were marked 5.4% higher at the start of trading following the earnings release to change hands at $78.24 each, a move that would extend the stock's year-to-date gain to around 48%.
"Best Buy's raising of earnings guidance for Q4 in the face of already cutthroat promotional activity is a reflection of a high level of confidence in its holiday strategy, which includes a value-added consultative store experience that provides a meaningful advantage over its core competitors," said Charlie O'Shea at Moody's, noting the group's 15% gain in comparable online sales.
"Best Buy is well-positioned to continue as one of the top performers in retail, with this holiday season set up for it to continue to build momentum," he added.