Best Buy stock soars 17% on strong beat-and-raise Q2 print

Best Buy (NYSE: BBY) raised its annual profit forecast on Thursday and reported better-than-expected top and bottom lines for the fiscal Q2 2025.

The retailer’s shares soared more than 17% after the opening bell.

BBY posted Q2 earnings per share (EPS) of $1.34, topping the consensus estimate of $1.16. The company generated $9.29 billion in revenue, slightly above the projected $9.24 billion.

Enterprise comparable sales declined by 2.3%, up from the 6.2% decline last year and above the analyst expectations of a 3.17% drop.

International comparable sales were down 1.8% compared to the estimated drop of 2.22% and last year's 5.4% dip. U.S. comparable sales also fell by 2.3%, better than the estimated 3.33% decline.

The gross margin came in at 23.5%, matching analyst estimates and up slightly from 23.2% the previous year.

Looking ahead, Best Buy raised its FY2025 EPS guidance to $6.10-$6.35, up from the previous range of $5.75-$6.20 and the consensus of $6.08. However, the company lowered its FY2025 revenue outlook to $41.3-$41.9 billion, compared to the consensus estimate of $41.81 billion.

For Q3 FY25, Best Buy expects comparable sales to decline by around 1.0% and projects a non-GAAP operating income rate of approximately 3.7%.

“Today we are reporting better-than-expected sales and profitability results for the second quarter,” said Corie Barry, Best Buy CEO.

“We delivered strong results in our Domestic tablet and computing categories, which together posted comparable sales growth of 6% versus last year.”

In a post-earnings note, Citi analysts reiterated a Buy rating on BBY shares, highlighting positive catalysts that offset macro headwinds.

"We recently upgraded BBY to Buy on the thesis the positive catalyst path for same-store sales will outweigh macro concerns and the margin flow-through will drive earnings upside. We believe 2Q is evidence the thesis is starting to play out," they wrote.

By Vahid Karaahmetovic

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