Best Buy Co. Inc. (NYSE: BBY) said on Tuesday that its profit and revenue in the fiscal third quarter came in better than expected. The company attributed its hawkish performance primarily to digital sales that grew sharply in recent months as COVID-19 restricted people to their homes.
Best Buy was reported 2.1% down in premarket trading on Tuesday. It is currently about 45% up year to date in the stock market – making it one of the winning stocks this year that you can learn to choose here. Best Buy has recovered close to 150% in the stock market since its year to date low in March.
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Best Buy’s Q3 financial results versus analysts’ estimates
Best Buy said that its net income in the quarter that concluded on 31st October printed at £293.31 million that translates to £1.11 per share. In comparison, its net income was capped at a lower £219.79 million in the same quarter last year or 83 pence per share.
Adjusted for one-time items, the American multinational earned £1.55 per share in the recent quarter versus the year-ago figure of 85 pence per share. Best Buy partnered with Instacart for same-day delivery across the entire U.S. last week.
At £8.89 billion, the consumer electronics’ retailer saw a 21.4% year over year growth in Q3 revenue. According to FactSet, experts had forecast the company to record a lower £8.25 billion of revenue in the recent quarter. Their estimate for per-share earnings stood at £1.28 per share.
Best Buy says U.S. comparable digital sales jumped 173.7%
Best Buy said that its same-store sales in Q3 jumped 23% on an annualised basis versus 13.6% expected. Comparable digital sales in the United States were up 173.7% as compared to 15% in Q3 of last year. In the prior quarter (Q2), Best Buy had seen an unprecedented 242% growth in its U.S. e-commerce sales.
The Richfield-based company refrained from giving its financial guidance for the future on Tuesday. CFO Matt Bilunas said:
“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.”
At the time of writing, Best Buy has a market cap of £23.70 billion and a price to earnings ratio of 19.77.
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