Shares of Best Buy (NYSE:BBY) climbed more than 7% on Tuesday morning after the electronics retailer reported better-than-expected third-quarter results and raised its full-year guidance. The company demonstrated strong momentum heading into the important holiday season.
On Tuesday, Best Buy morning reported third-quarter earnings of $1.13 per share on revenue of $9.76 billion, beating analyst expectations for $1.03 per share in earnings on sales of $9.7 billion. The company is seeing strong demand for appliances, tech accessories, and support services.
CEO Corie Barry said in a statement that Best Buy is gearing up for the holiday season by offering customers a range of products and flexibility to shop and receive products as they wish.
"Our teams have once again put together a best-in-class assortment, prepared an amazing set of deals and ensured we have great inventory availability," Barry said. "Customers ordering online will get free next-day delivery on thousands of items all season long with no membership or minimum purchase required. They can also choose to pick up their products in a store within an hour of placing their order."
Best Buy has high hopes for the fourth quarter, expecting earnings of $2.65 to $2.75 per share on revenue of $14.75 billion to $15.15 billion. Analysts have been forecasting results in the low end of that range. For the full year, the retailer expects earnings of $5.81 to $5.91 per share, up from previous guidance of $5.60 to $5.75 per share and above the $5.76 per share consensus.
The company also expects full-year comparable sales growth of 1% to 2%, up from 0.7% to 1.7% previously.
Best Buy, like many retailers, remains in the crosshairs of Amazon.com and other e-commerce vendors, but the company appears to have found a formula that allows it to coexist and prosper. This is shaping up to be a very interesting holiday season for Best Buy.