Best Buy beats profit, revenue and same-store sales expectations, but stock falls

Shares of Best Buy Co. Inc.

fell 2.1% in premarket trading Tuesday, although the consumer electronics retailer reported fiscal third-quarter profit, revenue and same-store that rose well above expectations, boosted by strong growth in digital sales. Net income for the quarter to Oct. 31 grew to $391 million, or $1.48 a share, from $293 million, or $1.10 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $2.06 from $1.13, beating the FactSet consensus of $1.71. Revenue rose 21.4% to $11.85 billion, above the FactSet consensus of $11.00 billion, as same-store sales growth improved to 23.0% from 1.7% to beat expectations of a 13.6% rise. U.S. comparable online sales soared 173.7%, after rising 15.0% a year ago. The company did not provide financial guidance. “While the demand for the products and services we sell remains at elevated levels as we start the fourth quarter, it is very difficult for us to predict how sustainable these trends will be due to the significant uncertainty related to the various impacts of the pandemic,” said Chief Financial Officer Matt Bilunas. The stock has gained 4.0% over the past three months, while the S&P 500

tacked on 4.3%.