RICHFIELD, Minn. (AP) — Best Buy Co. on Thursday reported strong quarterly profit but revenue fell short and shares of the retailer fell 6% in premarket trading.
The Richfield, Minnesota-based company said it had fiscal second-quarter net income of $238 million, or 89 cents per share. Earnings, adjusted for restructuring costs and amortization costs, were $1.08 per share.READ MORE: St. Paul School Board Votes To Close 6 Schools Amid Declining Enrollment, Sustainability Concerns
The results topped Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 99 cents per share.
The consumer electronics retailer posted revenue of $9.54 billion in the period, falling short of Street forecasts. Eight analysts surveyed by Zacks expected $9.57 billion.
Best Buy said profit was driven by cost reductions and efficiencies.
For the current quarter ending in November, Best Buy expects its per-share earnings to range from $1 to $1.05.READ MORE: Minneapolis Sees 90th, 91st Homicides Of 2021 After Violent Night
The company said it expects revenue in the range of $9.65 billion to $9.75 billion for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $9.82 billion.
Best Buy raised its full-year profit outlook and now expects fiscal 2020 earnings in the range of $5.60 to $5.75 per share. However it trimmed the high end of its revenue guidance and now sees it in a range of $43.1 billion to $43.6 billion.
The company said its updated guidance reflects its strong earnings in the year to date as well as the impact of tariffs on Chinese goods and “general uncertainty related to overall customer buying behavior in the back half of the year.”
Best Buy shares have risen 30% since the beginning of the year, while the Standard & Poor’s 500 index has climbed 15%. The stock has dropped 11% in the last 12 months.MORE NEWS: Wizards Beat Wolves 115-107; Towns Hurts Himself Dunking
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