Best Buy Stock Surges on Earnings Beat and Cost Cutting Plan

Best Buy (BBY) posted first quarter earnings on Thursday that beat analyst estimates, causing shares to jump. The consumer electronics chain saw increased demand for smart phones and large screen TVs. The company reported $0.37 per share, smashing the predicted $0.29 per share estimate and up from last year's numbers. Revenue was down 1 percent to $8.56 billion, also beating Wall Street estimates of $8.46 billion. Best Buy has recently closed stores and consolidated business in Canada. The company has cut around 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 cut $400 million dollars in costs over the next three years.