MINNEAPOLIS (AP) — Growth in China and strong mobile phone sales helped to push Best Buy’s first-quarter net income and revenue beyond Wall Street expectations Tuesday, sending shares jumping more than 7 percent before the market opened.
A slight decline in sales was expected due to tough competition from discounters and online retailers, and net income slid 12 percent as consumers put off purchases of TVs and DVDs.READ MORE: COVID In Minnesota: 5 More Deaths Reported, With Hospitalizations Still Trending Up
Net income fell to $136 million, or 35 cents per share, compared with $155 million, or 36 cents per share, last year. Still, the company bested consensus estimates by 2 cents, according to analysts polled by FactSet.
Revenue rose 1 percent to $10.9 billion, buoyed by a 12 percent jump in online revenue. That allowed Best Buy to edge out most Wall Street revenue expectations as well.
The Minneapolis company has been shifting the emphasis on the products it carries in an attempt to grab a bigger share of the market for real moneymakers such as mobile phones, video games, appliances, e-readers and tablet computers.READ MORE: Overnight Shooting Leaves 3 Hurt In St. Paul; 1 Injured Man Arrested As Suspected Shooter
CEO Brian Dunn pointed out “double-digit growth online and strong growth of mobile phones.”
Revenue in stores open at least one year fell 1.7 percent. That figure is a key gauge of a retailer’s financial health because it excludes the volatility of stores that open or close during the year.
Best Buy reaffirmed its full year net income guidance of $3.30 to $3.55 per share, excluding one-time items. Analysts expect $3.46 per share. The company now expects revenue toward the higher end of its projected $51 billion to $52.5 billion range. Analysts expect $51.8 billion.
Shares of Best Buy Co. Inc. rose $2.04 to $30.86 before the market opened.MORE NEWS: Eligible Minnesotans Can Now Submit Requests For $100 COVID Vaccine Reward: 'This Is The Time To Do It'
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