Best Buy Co., Inc. (BBY – Analyst Report), specialty retailer of consumer electronics, came out with first-quarter fiscal 2016 results, wherein adjusted earnings of 37 cents a share beat the Zacks Consensus Estimate of 29 cents, and increased 5.7% from the prior-year quarter. Renew Blue transformation program and strength seen in categories like large screen televisions and mobile phones helped the company to post better-than-expected bottom-line results.
Including one-time items and discontinued operations, quarterly earnings came in at 36 cents a share compared with $1.31 in the year-ago quarter.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 and 2017 has been portraying a downtrend over the last 30 days. In the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of about 26.6%.
Revenues: Best Buy generated total revenue of $8,558 million that fell 0.9% year over year, but came ahead of the Zacks Consensus Estimate of $8,518 million. Consolidated comparable-store sales jumped 0.6%.
Management now forecasts second-quarter fiscal 2016 revenue growth to range from flat to negative low-single digits.
Zacks Rank: Currently, Best Buy carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Best Buy’s shares are up nearly 10.1% during pre-market trading hours following the earnings release. Clearly, a positive sentiment is palpable among investors following the company’s better-than-expected results.
