At Thursday at 3:15 p.m. EDT, shares were trading at $35.14 a share, showing a rise of about 4% for the day.
The consumer electronics chain saw increased demand for smartphones and large-screen TVs. The company reported earnings of $0.37 per share, smashing the predicted $0.29-per-share estimate and a spike from last year's numbers. Revenue declined 1% to $8.56 billion, also beating analysts' estimates of $8.46 billion.
Best Buy has recently closed stores and consolidated business in Canada.The company has cut about 1,500 jobs since the end of March.
The largest U.S. electronics chain benefited from sales of high-margin computer hardware and bundling phone contracts with handsets. The retailer is now aiming to slice $400 million in costs over the next three years.
Best Buy CEO Hubert Joly expressed optimism about the strong quarter, commenting in a release, "Enterprise revenue of $8.6 billion, in addition to our non-GAAP operating income rate and non-GAAP diluted EPS, all exceeded our expectations during the quarter due to a stronger-than-expected performance in the Domestic business."
International sales took the biggest hit, with a 22.1% decline, to $668 million. Best Buy cited the strong dollar and underperformance in the Canadian electronics market. Increasing sales in Best Buy's American stores and online platform were well received by investors.
Last month Best Buy announced that it will accept Apple's (AAPL) Apple Pay on its IOS app and is preparing to adopt the digital-payment method throughout its stores later this year. The electronics company has been quick to jump on new market share after smaller hardware providers struggled to attract customers and RadioShack recently went bankrupt. Best Buy's stock has been on the rise since Joly took over as CEO in 2012.
TheStreet Ratings team rates Best Buy Co. as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about its recommendation:
"We rate BEST BUY CO INC (BBY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: BBY Ratings Report