Best Buy stock gains after earnings beat but mixed outlook, sees tech sales bottoming this year

Shares of Best Buy Co. Inc. (BBY) got a 0.5% boost in premarket trading Tuesday, after the consumer electronics retailer reported fiscal second-quarter results that beat expectations, while providing a mixed full-year outlook. Net income for the quarter to July 29 fell to $274 million, or $1.25 a share, from $306 million, or $1.35 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.22 was above the FactSet consensus of $1.06. Revenue fell 7.2% to $9.58 billion, topping the FactSet consensus of $9.52 billion, as same-store sales fell 6.2% but beat expectations for a 7.0% decline. For fiscal 2024, the company lowered its guidance ranges for revenue to $43.8 billion to $44.5 billion from $43.8 billion to $45.2 billion and for same-store sales declines to 4.5% to 6.0% from 3.0% to 6.0%, but bumped up its adjusted EPS guidance to $6.00 to $6.40 from $5.70 to $6.50. The company said it expects this year to be the "low point" in tech demand after two years of declines.

-Tomi Kilgore

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08-29-23 0711ET

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