Here's Why One Analyst Isn't Excited About Best Buy Despite Earnings Beat

Best Buy (BBY) - Get Report shares surged Tuesday after reporting better-than-expected earnings, but its long-term prospects aren't so exciting, according to one expert. 'The outlook for the company still doesn't excite me,' said Craig Erlam, a senior market analyst at Oanda, based in London. 'There are still a number issues that the company has to face.' He said the company is relying on cost cutting, which isn't a viable long-term strategy. Plus, the retailer faces stiff competition from the likes of Amazon (AMZN) - Get Report . Same store sales rose 0.8 percent, while analysts had expected a 0.5 percent decline. In first quarter, same store sales showed no growth. Earnings per share of $0.57 beat estimates of $0.43. TheStreet's Scott Gamm reports from Wall Street.