Best Buy raises outlook as appliance, tablet sales grow

Best Buy employees in Cary, N.C., assist a customer with a computer. (AP Photo/Gerry Broome)

Best Buy reported third-quarter results that topped Wall Street estimates and raised its full-year outlook, sending shares higher.

The electronics retailer earned $293 million, or $1.13 a share, as enterprise revenue rose 1.7 percent $9.76 billion. Wall Street analysts surveyed by Refinitiv were expecting adjusted earnings of $1.03 a share on revenue of $9.7 billion.

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Comparable sales rose 2 percent from a year ago, driven by strength in appliances, headphones, tablets, services and computing, while the gaming and home theater categories saw declines.

Domestic online revenue rose 15 percent to $1.4 billion as average order value increased. Online revenue as a percentage of domestic revenue was up 180 basis points to 15.6 percent.

“Our teams delivered another strong quarter of top- and bottom-line growth,” said Best Buy CEO Corie Barry, adding that the company is “excited” about its holiday plans.

Best Buy sees fiscal year 2020 enterprise revenue of $43.2 billion to $43.6 billion, up from $43.1 billion to $43.6 billion. The retailer expects earnings of $5.81 to $5.91 a share, higher than its prior forecast of $5.60 to $5.75.

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Shares are up 40 percent this year, topping the S&P 500's 25 percent gain.