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Best Buy sales, earnings beat Street

Best Buy Co. reported better-than-expected third quarter sales and earnings as it heads into the crucial holiday season.

The consumer electronics giant reported net income of $277 million, or 99 cents per share, for the quarter ended Oct.28, up from $239 million, or 78 cents per share, in the year-ago period. Adjusted earnings per share was 93 cents. Analysts had expected earnings of 85 cents per share.

Total revenue rose 2.9% to $9.59 billion. Analysts had expected $9.57 billion. Same-store sales rose 4.3%, also more than expected, driven by gains in mobile phones, gaming, appliances, wearables, headphones and smart home items. Tablet sales declined.

“Similar to the first half of the year, our topline performance was helped by a favorable environment and driven by how customers are responding to the unique and elevated experience we are building,” said Best Buy chairman and CEO Hubert Joly. “We are energized by our continued momentum and overall performance and see significant value-generation opportunity ahead of us by successfully enriching lives with technology and providing services and solutions that solve real customer needs.”

The retailer said it now sees revenue of $14.4 billion to $14.8 billion, adjusted earnings per share of $2.48 to $2.58 and enterprise, domestic and international same-store sales growth of flat to 3%. Analysts were looking for revenue of $14.67 billion earnings per share of $2.58, and same-store sales of 1.7%.

The retailer anticipates full-year adjusted earnings in a range of $5.09 to $5.19 per share, with revenue between $42.5 billion and $42.9 billion. Its prior outlook was for earnings of $4.95 to $5.10 per share, up from $4.80 to $5.00 per share. Analysts polled by FactSet predict earnings of $5.11 per share on revenue of $42.73 billion.
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