What To Expect From Best Buy’s Q2 Earnings

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Best Buy (NYSE:BBY) is scheduled to announce its fiscal second quarter results on Tuesday, August 29. The company started the year on a strong note, as both its revenue and earnings per share came in ahead of market expectations. The company’s stock surged more than 11% after the announcement of its better-than-expected first quarter results. In Q1, Best Buy’s revenue grew 1% year-over-year (y-o-y) to around $8.5 billion, primarily due to an enterprise comparable sales increase of 1.6%. This growth was driven by a strong performance in gaming, and better than expected results in mobile, primarily due to new unlimited data plan offers from many carriers, which generated increased demand across devices.

Going forward, Best Buy expects its sales to benefit from the positive category momentum from the first quarter. As a result, the company expects its total revenue to be in the range of $8.6-$8.7 billion in the second quarter. It also expects domestic comparable sales growth in the range of 1.5% to 2.5%, and adjusted earnings per diluted share of $0.57 to $0.62 for the company. Reuters’ compiled analyst estimates forecast earnings of $0.63 per share and revenue of $8.66 billion for Q2, implying a growth of about 2% and 11%, respectively.

For the full year fiscal 2018, the company raised its guidance to reflect the better-than-expected first quarter results, and now expects revenue growth of approximately 2.5% compared to the prior outlook of approximately 1.5%. It also expects full year non-GAAP operating income growth of 3.5% to 8.5% versus its original outlook of 1% to 3% growth.

Have more questions about Best Buy? Please refer to our complete analysis for Best Buy 

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