Best Buy (BBY) Smashes Q1 Earnings and Raises Guidance to Send Shares Higher

Shares of Best Buy (NYSE: BBY) are up 3.5% in pre-open trading Thursday after the company reported better-than-expected quarterly earnings as government stimulus checks yielded strong demand for tech and electronics equipment.

The company reported a profit of $2.23 per share on sales of $11.64 billion for the quarter to end-April. This is much higher than the $1.42 per share on sales of $10.43 billion that the Street was calling for. Moreover, the company said that sales online and at physical stores grew by 37.2% to smash the 22.4% growth consensus.

“Customer demand for technology products and services during the quarter was extraordinarily high. This demand is being driven by continued focus on the home, which encompasses many aspects of our lives including working, learning, cooking, entertaining, redecorating and remodeling,” said Corie Barry, Best Buy CEO.

“The demand was also bolstered by government stimulus programs and the strong housing environment. Our teams across the organization met the demand with remarkable execution. From our merchant and supply chain teams working behind the scenes to our Blue Shirts and Geek Squad agents on the front lines – our employees once again showed amazing flexibility and execution managing extraordinary volumes. Most importantly, they provided exceptional customer service in a safe environment.”

For the current quarter, BBY sees comp sales rising 17% while for the full-year comparable sales are expected to jump by 3% to 6%, which is higher than the prior guidance of -2% to 1%.

BBY stock price was up 17% year-to-date as of Wednesday’s close.

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