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Thursday September 6, 3:41 pm Eastern Time
Best Buy to soundly beat earnings forecasts
(UPDATE: Adds analyst comments; updates share price)
MINNEAPOLIS, Sept 6 (Reuters) - Best Buy Co. (NYSE:BBY - news), the No. 1 U.S. consumer electronics specialty retailer, on Thursday said second-quarter earnings will far exceed Wall Street forecasts because of robust sales of DVD players and digital televisions and cameras.
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Best Buy said it expected earnings of 38 cents a share or better for the second quarter ended Sept. 1, beating the consensus estimate of 30 cents a share. Analysts' estimates ranged from 29 cents to 32 cents a share, according to Thomson Financial/First Call.
Best Buy shares rose $1.37, or 2.33 percent, to $60.09 after a delayed opening on the New York Stock Exchange. The stock, which is up 117 percent since January, has outperformed rival Circuit City Stores Inc. (NYSE:CC - news), which has gained 54 percent on the year.
Best Buy said sales at stores open at least 14 months rose 2.8 percent in the second quarter from a year ago. Total sales increased 31 percent to $4.17 billion, reflecting the acquisition of Musicland and Magnolia Hi-Fi stores.
``Best Buy has been able to post stronger-than-expected sales without being overly promotional, and continues to aggressively manage expenses,'' Alan Rifkin, retail analyst with Lehman Brothers, wrote in a research note.
A year ago, Best Buy earned 36 cents a share in the second quarter.
``I'm pleased with our performance in this challenging economic environment,'' Brad Anderson, president of Best Buy, said in a statement.
In June, the Minneapolis-based retailer had forecast flat same-store sales in the quarter and said it expected second-quarter earnings of 29 cents to 31 cents a share.
Lehman's Rifkin said it was clear from the Best Buy sales results that Best Buy is taking significant market share from Circuit City |
