Best Buy Co Inc (NYSE:BBY) shares rose 4.25% to $64.21 after the electronics retailer beat earnings expectations in its holiday quarter, even as sales slipped slightly more than Wall Street had forecast.
The chain was just one of a handful of stocks in positive territory in early trading, amidst widespread selling as the fourth day of fighting continued in the Middle East.
Best Buy reported adjusted earnings per share of $2.61 for the fourth quarter, up 1.2% year-on-year and ahead of the $2.47 analysts expected.
Revenue came in at $13.81 billion, below the $13.88 billion consensus estimate, with comparable sales down 0.8%.
Chief executive Corie Barry said the company was “pleased to report better-than-expected profitability”, adding that while comparable sales declined, market share was “at least flat”, pointing to softer overall demand across the industry during the holiday period.
Domestic revenue fell 1.1% to $12.58 billion for the Minneapolis-headquartered group, with weakness in home theatre and appliances partly offset by growth in computing and mobile phones. Online sales accounted for 39% of domestic revenue.
Profitability improved as costs were controlled. Domestic adjusted SG&A expenses fell to 15.9% of revenue, helped by lower compensation and health-related expenses. The company also highlighted growth in its digital Marketplace and Best Buy Ads business.
The quarterly dividend was raised 1% to $0.96 per share.
For the new financial year, Best Buy expects adjusted earnings per share of $6.30-6.60 and revenue of $41.2-42.1 billion, compared to $41.7 billion this past year and $41.5 billion the year before.