US electronics retailer Best Buy (BBY) posted earnings and revenue higher than Wall Street analysts’ expectations, driven by computing products and mobile phones. That prompted the firm to raise its fiscal third-quarter and full year revenue forecast.
Non-GAAP net earnings in the second quarter ended July 29 totaled $214 million, or $0.69 per share, compared with $183 million or $0.63 per share, a year earlier, the company said on Tuesday. That topped the $0.63 average estimate of analysts surveyed by Capital IQ.
Revenue was $8.94 billion compared with $8.53 billion earlier, which also beat the average analyst prediction of $8.67 billion on Capital IQ. Sales of computer and mobile phone products jumped 47% both at home and abroad, more than the growth rates for any other product category.
“Against a backdrop of continued healthy consumer confidence, we believe broad-based product innovation is resonating with consumers and driving higher spend,” said Chief Executive Officer Hubert Joly.
Best Buy anticipates non-GAAP earnings in the range of $0.75 to $0.80 per share, and revenue between $9.3 billion and $9.4 billion for the current quarter that ends in November. Analysts are forecasting $0.65 of adjusted earnings per share and $8.99 billion in revenue.
For the full fiscal year the company expects revenue growth of 4%, compared with an earlier expectation of 2.5% and analysts’ 2.7% estimate.
“The increased topline expectations are being driven by the anticipation of continued positive industry and consumer momentum, coupled with the impact of product launches,” said CFO Corie Barry.