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Best Buy Shares Surge on Strong Q1 Earnings
28 May
Summary
- Best Buy's Q1 adjusted EPS of $1.28 beat estimates by $0.06.
- Revenue increased 1.9% year-over-year to $8.94 billion.
- Comparable sales grew 2.0%, improving from a prior decline.
Best Buy announced first-quarter financial results that exceeded analyst forecasts, prompting a significant jump in its share price in premarket trading. The retailer reported adjusted earnings per share of $1.28, surpassing the consensus estimate of $1.22 by $0.06.
Revenue for the quarter reached $8.94 billion, a 1.9% increase from the same period last year, and also beat analyst expectations. Comparable sales saw a healthy growth of 2.0%, a notable improvement from a decline in the previous year. This growth was powered by strong performances in key categories like gaming and computing, alongside advancements in services and advertising initiatives.
Looking ahead, Best Buy has reaffirmed its full-year fiscal 2027 guidance. The company projects adjusted diluted earnings per share to range between $6.30 and $6.60. Revenue is expected to fall between $41.2 billion and $42.1 billion. As of the current reporting period, comparable sales in May have shown strong month-to-date growth in the high single digits, with a projected 1.0% growth for the second quarter.
