Best Buy is sliding after missing on guidance
- Best Buy's earnings beat on the top and bottom lines.
- The electronics retailer raised its full-year guidance, but missed expectations.
- Shares of Best Buy fell as much as 7%.
- Watch Best Buy trade in real-time here.
Best Buy reported better-than-expected second-quarter results on Tuesday, but shares plunged as much as 7% in pre-market trading as guidance disappointed.
The electronics retailer earned an adjusted $0.91 a share, easily beating the $0.82 that analysts surveyed by Bloomberg were expecting. Revenue rose 4.9% versus a year ago to $9.38 billion, topping the $9.28 billion that was expected, while comparable sales were up 6.2% YoY.
"We are happy to report strong top- and bottom-line results for the second quarter that exceeded our expectations," CEO Hubert Joly said in the earnings release.
"Our comparable sales growth was helped by the favorable environment in which we operate and driven by how customers are responding to the unique and elevated experience we are building. We are particularly encouraged with the continued progress of our Net Promoter Scores and our continued market share gains. We are excited about the progress we are making on the implementation of our Best Buy 2020 strategy and the opportunities in front of us."
Best Buy boosted its guidance for adjusted earnings-per-share in the third quarter to between $0.79 and $0.84, but that was shy of the $0.91 that analysts were expecting.
The retailer sees its full-year adjusted earnings per diluted share between $4.95 and $5.10, up from its previous outlook of $4.80 to $5.00. Analysts were expecting $5.01.
As for revenue, Best Buy sees fiscal year 2019 sales of between $42.3 billion and $42.7 billion, ahead of the $42.34 billion estimate.
Shares of Best Buy were up 14% through Monday this year.
Ethel Jiang/Business Insider
- Amazon has completely overhauled how retailers set their prices — here’s how it’ll affect everyone from shoppers to the Fed
- 3 dead, including gunman, after mass shooting at Madden video game tournament in Jacksonville, Florida
- Police have identified the suspect in the deadly shooting in Jacksonville — here's what we know about him