When Jim Cramer Would Buy Best Buy Stock
Best Buy posted much stronger-than-expected second quarter earnings Tuesday, but declined to provide a full-year profit forecast and said third quarter sales growth would likely slow amid the ongoing pandemic uncertainty.
Best Buy said non-GAAP earnings for the three months ending on August 1 were pegged at $1.71 per share, up 58.3% from the same period last year and well ahead of the Street consensus forecast of $1.08 per share. Group revenues, Best Buy said, rose 3.9% to $9.91 billion, a figure that also topped analysts's estimates of a $9.7 billion tally.
Same store sales came in 5.8% higher from last year, well ahead of the Refinitiv forecast of 3.6%, while online sales surged by 242%.
“As a result of the ongoing uncertainty, we are not providing financial guidance today,' said CFO Matt Bilunas. "However, I would note that we are planning for Q3 sales to be higher compared to last year but likely will not continue at the current quarter-to-date level of approximately 20% growth. Also, as our stores are fully reopened, we are planning for Q3 SG&A expense to be more in line with last year’s third quarter.”
“Overall, as we plan for the back half of the year, we continue to weigh many factors including potential future government stimulus actions, the current shift in personal consumption expenditures from areas like travel and dining out, the possible depth and duration of the pandemic, the risk of higher unemployment over time, and the availability of inventory to match customer demand,” he added.
Latest Videos From TheStreet and Jim Cramer:
- Coronavirus Update: Delta Plans to Furlough 1,900 Pilots in October
- Jim Cramer: There Are Other Companies That Are Not Zoom
- 'Unhinged' Signals Worst Is Over for Struggling Movie Theaters
- Wedbush's $3,500 Bull Case for Tesla: Is It Credible?
- Which Biotech Companies Are Producing a COVID-19 Vaccine?
- Hot Commodity in the NBA Bubble? Barbers