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Consumer electronics retailer Best buy (BBY) on Wednesday beat Wall Street's fourth-quarter targets for its fiscal year and guidance for earnings guidance increased. News of Best Buy's results boosted the company's shares early in the session.
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The Richfield, Minnesota-based company made an adjusted profit of $ 2.72 per share for a business turnover of $ 14.8 billion in the quarter ended February 2. Analysts expect Best Buy earnings of $ 2.57 per share for sales of $ 14.7 billion. On an annual basis, Best Buy's profits increased by 12%, while total sales decreased by 4%.
Same store sales increased 3% from the same quarter last year.
The Best Buy stock jumped 10%, nearly 66.55%, in trading of pre-traded commodities on the stock market today.
Best Buy Earnings: Earnings are ahead of estimates
For the first quarter of its fiscal year, Best Buy expects adjusted earnings of 86 cents per share on sales of $ 9.1 billion. This is based on the midpoint of his directives.
Wall Street modeled Best Buy earnings of 83 cents per share on sales of $ 9.18 billion in the April quarter. In the quarter of the previous year, he had earned 82 cents a share for a turnover of $ 9.11 billion.
For the full year, Best Buy has targeted adjusted earnings per share of $ 5.55 on a $ 43.4 billion business. Analysts were looking for earnings per share of $ 5.49 on a $ 43.39 billion business in 2020.
"Our priority for fiscal year 2020 is to continue to transform the company by bringing to market solutions that meet the real needs of customers and building relationships with customers," said Corie Barry, CFO, in A press release.
She added, "From a financial point of view, we plan to generate revenue growth while maintaining our constant non-GAAP operating income rate."
Increase in sales of clothing and appliances
Best Buy attributed the drop in its total business in the fourth quarter to the closing of 257 Best Buy Mobile stores and 12 large format stores last year. The fourth quarter of fiscal 2019 also experienced a week less than the same quarter of the previous year.
The most important vectors of the vacation quarter were clothing, home appliances, games and smart appliances for the home. These gains were partially offset by lower mobile phone sales, said Best Buy.
Best Buy also increased its quarterly dividend by 11% to 50 cents per share. The company has increased its dividend for six consecutive years.
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