Shares of Best Buy (BBY -1.41%) jumped as much as 10.2% higher on Tuesday, boosted by a strong second-quarter earnings report.
Best Buy's sales increased 20% year over year, landing at $11.9 billion. Adjusted earnings jumped from $1.71 to $2.98 per share over the same time frame. Your average analyst would have settled for earnings near $1.85 per share on top-line revenue in the neighborhood of $11.5 billion.
Management also set optimistic revenue targets for the third quarter and full year, encouraged by improving business trends.
On the earnings call, Best Buy CEO Corie Barry noted that many product categories are coming back from a difficult supply situation.
"Except for some pockets in appliances and home theater, we do not believe it materially limited our overall sales growth," Barry said.
The retail giant pulled every available lever to stock up on products in limited supply ahead of the holiday shopping season. Consumer demand is generally strong thanks to improving employment figures and a helpful government stimulus program. Planning ahead for the holidays should let Best Buy deliver hefty sales when it matters most.
Having climbed 28% above the 52-week lows of March, Best Buy's stock is now hovering just below all-time highs again. This solid report gave bullish investors a fresh jolt of energy.