Why Best Buy (BBY) Stock Is Gaining Thursday Afternoon

NEW YORK (TheStreet) -- Best Buy (BBY) was gaining 2.7% to $26.04 Thursday after beating analysts' estimates for earnings in the first quarter.

For the first quarter the electronics retailer reported earnings of 33 cents a share, 13 cents higher than analysts' estimates of 20 cents a share. Revenue fell -3.4% year-over-year to $9.03 billion for the quarter. Analysts surveyed by Thomson Reuters expected revenue of $9.2 billion for the quarter.

Comparable online sales grew 29% in the quarter thanks to a higher average order online, and an increase in the number of online orders taken in retail stores. Comparable-store sales fell 1.9% from the year-ago quarter, however. Best Buy expects comparable sales to be negative in the low-single digits in the second and third quarter due to a soft mobile phone category.

More than 11.3 million shares of Best Buy changed hands by 3:30 p.m., well above the average daily trading volume of about 6.5 million.

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