Best Buy (BBY) stock jumps on Q3 beat, raised guidance

Best Buy (NYSE: BBY) shares gained over 8% in pre-open trading Tuesday following better-than-expected third-quarter results and raised guidance.

The retailer posted non-GAAP EPS of $1.38, down from $2.08 last year, but better than the consensus of $1.03. Meanwhile, revenue fell 11.1% from last year to $10.59 billion but again beat the consensus of $10.32 billion. Comparable store sales fell 10.4% in the quarter.

Goldman Sachs analyst Kate McShane was expecting a 12.4% decline in sales and a 12.9% decline in comparable sales.

Domestic revenue of $9.80 billion decreased by 10.8% versus last year primarily driven by a comparable sales decline of 10.5%.

At the end of Q3 FY23, merchandise inventories of $7.3 billion declined 14.7% compared to last year.

Looking to the full year, CFO Matt Bilunas, said the outlook will flow through better-than-expected Q3 results while keeping Q4 expectations unchanged. They now expect comparable sales to decline approximately 10% and non-GAAP operating income rate to be slightly higher than 4.0%. Previously, the company expected comparable sales to decline by around 11%.

The company resumed share repurchases in November after pausing during Q2 and now expects to spend approximately $1 billion in share repurchases this year.

By StreetInsider.com Staff

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