Best Buy's stock rises as it lifts 2025 profit outlook
By Steve Gelsi
Electronics retailer said industry is 'showing signs of stabilization'
Best Buy Co.'s stock was up by nearly 13% on Thursday after the electronics retailer boosted its fiscal 2025 profit outlook and topped analyst estimates for second-quarter profit.
"As we look to the back half of the year, we expect our industry to continue to show increasing stabilization," Best Buy Financial Chief Matt Bilunas said in a prepared statement.
Best Buy (BBY) said its second-quarter net income rose to $291 million, or $1.34 a share, from $274 million, or $1.25 a share, in the year-ago quarter. Best Buy's adjusted profit of $1.34 a share beat the FactSet consensus estimate of $1.16 a share.
Second-quarter sales fell to $9.29 billion from $9.58 billion, but came in ahead of the analyst estimate of $9.23 billion.
Looking ahead, Best Buy said it now expects full-year 2025 adjusted earnings of $6.10 a share to $6.35 a share, ahead of the analyst estimate of $6.07 a share.
Best Buy's previous 2025 profit outlook was $5.75 a share to $6.20 a share.
Best Buy said it expects 2025 same-store sales to drop by 1.5% to 3%.
Including Thursday's trades, Best Buy's stock is up 26.3% in 2024, compared to a 17.6% rise by the S&P 500 SPX.
With its gain on Thursday, the stock snapped a two-day losing streak and remains on pace for its largest daily rise since May 30, when it advanced by 13.4%, according to Dow Jones Market Data.
John Tomlinson, analyst M Science, said Best Buy's computer and tablet sales offset weak sales in appliances, gaming and home theater.
"While we are encouraged by Best Buy's improved second quarter topline performance, demand remains choppy, and consumers are buying on need and value," Tomlinson said in a statement. "This is a consistent theme we have seen in retail earnings."
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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08-29-24 1004ET
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