Best Buy stock soars 14% after earnings smash expectations
$Best Buy(BBY)$ has been struggling to turn things around after two years of sluggish sales.
The retailer's shares reached a new 52-week high after posting strong earnings.
The Minnesota-based company reported adjusted earnings of $1.34 per share on revenue of $9.29 billion for the latest quarter, surpassing analysts’ expectations of $1.16 per share on sales of $9.23 billion. Looking ahead, Best Buy BBY+14.1% has raised its full-year adjusted earnings forecast to a range of $6.10 to $6.35 per share, up from its previous estimate of $5.75 to $6.20.
In the recent earnings season, the performance of various retailers painted a picture of American consumers who prioritize necessities but are increasingly buying new and fashionable products at the right price. American consumers remain on the sidelines of larger purchases and projects, partly because they are waiting for interest rates to fall. This consumption habit benefits retailers that sell necessities and low-priced non-essential products, while disadvantages companies that offer more expensive products.
According to the latest research from market research firm Circana, sales of consumer electronics have been on a downward trend and are expected to fall another 2% in 2024.
However, as the long-awaited upgrade cycle of post-epidemic technology products begins to arrive, the retailer hopes to boost sales through marketing and operational initiatives. $Best Buy(BBY)$ said in July that the company will add trained sales teams in three key parts of its stores - computers, appliances and home theaters - and launch a marketing campaign to attract consumer interest.
Best Buy Co., Inc. (BBY) Stock Price, News, Quote & History - Yahoo Finance
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