Best Buy (BBY) shares are trading sharply higher this morning after the company reported better-than-expected profits for its fiscal second quarter ended August 28.
For the quarter, the electronics retailer posted revenue of $11.34 billion, up 3% from a year ago, but a bit below the Street at $11.7 billion. However, adjusted profits of 60 cents a share were well above the Street at 46 cents, as gross margin improved to 25.7% from 24.4% a year ago. Same store sales were down 0.1% from a year ago.
The company noted that it repurchased $600 million of its common shares in the latest quarter. To reflect the lower share count, the company lifted its EPS forecast for FY 2011 by 10 cents a share to a range of $3.55 to $3.70 a share. The retailer sees full year sales of $52 billion. The Street has been forecasting $52.3 billion in sales and profits of $3.43 a share. Best Buy sees same-store sales up 1%-2% for the full year.
BBY this morning is up $3, or 8.7%, to $37.65.
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