Best Buy Shares Soar 14% On Better-Than-Expected Q1

Best Buy Co InBBYmore than 14 percent

The big-box retailer said it earned $0.60 per share in the quarter on revenue of $8.528 billion. By comparison, the company earned $0.43 per share in the same quarter a year ago on revenue of $8.443 billion. Operating income fell from $372 million a year ago to $300 million. "We are pleased today to report strong top and bottom line results for the first quarter of fiscal 2018," said Hubert Joly, Best Buy chairman and CEO. "Our Q1 performance reflects the strength of our customer value proposition and continued momentum in the execution of our strategy. I want to thank all our associates across the company for their hard work in delivering these results."

Share Repurchase, Dividends, Guidance

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Enterprise comparable sales rose 1.6 percent in the quarter while domestic comparable sales rose 1.4 percent. Comparable online sales rose 22.5 percent while the international segment realized a 4.0 percent comparable sales gain.

Computing, mobile phones and consumer electronics sales accounted for the majority of total sales in Best Buy's domestic segment at 45 percent and 33 percent, respectively. Appliances, entertainment and services account for the remaining 7 percent, 10 percent and 5 percent, respectively.

During the first quarter, Best Buy bought back 8.1 million shares of its own stock worth $373 million while the company paid a quarterly dividend of $0.34 per share, or $105 million.

Looking forward to the fiscal second quarter, Best Buy expects its total enterprise sales to fall in a range of $8.6 to $8.7 billion, which is ahead of the $8.5 billion analysts were expecting. The company also guided its earnings per share to a range of $0.57 to $0.62, which is in line with the $0.59 per share analysts were expecting.

Best Buy also guided for its adjusted operating income to grow 3.5 percent to 8.5 percent for the full fiscal year.