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Shares of Best Buy (NYSE:BBY) are trading modestly higher in premarket Tuesday after the retailer reported comparable sales and profit ahead of average analyst estimate.
Best Buy reported a Q2 EPS of $1.54 to easily beat the analyst estimate of $1.29. Revenue for the quarter came in at $10.33 billion, slightly ahead of the consensus estimate of $10.29 billion.
Comparable sales declined +12.1%, slightly better than the Bloomberg consensus of -13.1%. For this quarter, the company expects comparable sales “will decline slightly more than the 12.1% decline we reported for the second quarter.”
For the full year, BBY expects comparable sales to “decline in a range around 11%.” Analysts were looking for a decline of -10.7%.
Best Buy also said it paused its share repurchase program during the second quarter.
“As we entered the year, we expected the consumer electronics industry to be softer than last year following two years of elevated growth driven by unusually strong demand for technology products and services and fueled partly by stimulus dollars,” the company said in a press release.
“The macro environment has been more challenged due to several factors and that has put additional pressure on our industry.”
A Goldman Sachs analyst noted that shares are up in premarket “likely due to the better-than-expected 2Q result as well as comp guidance for 3Q that is in-line with current consensus,” which is a result of the “better-than-expected cost control.”
