Best Buy Q2 Results Top Estimates; Declares Dividend

(RTTNews) - Electronics retailer Best Buy Co., Inc. (BBY) reported Tuesday an 82 percent increase in profit for the second quarter from last year, primarily due to higher revenues and lower expenses.

Both adjusted earnings per share and revenues for the quarter topped analysts' estimates. The company also said it is not providing financial guidance as a result of the ongoing uncertainty.

Best Buy's net earnings for the quarter increased to $432 million or $1.65 per share from $238 million or $0.89 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $1.71 per share, compared to $1.08 per share a year ago. On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.

Enterprise revenues for the quarter edged up to $9.91 billion from $9.54 billion in the same quarter last year. Analysts had a consensus revenue estimate of $9.71 billion.

Enterprise comparable sales rose 5.8 percent, compared to an increase of 1.6 percent last year.

Domestic revenue increased 3.5 percent from last year to $9.13 billion, mainly driven by comparable sales growth of 5.0 percent, which was partially offset by the loss of revenue from 25 permanent store closures in the past year. Domestic online revenue of $4.85 billion soared 242.2 percent from last year.

International revenue also grew 9.4 percent to $782 million, driven primarily by comparable sales growth of 15.1 percent, which was partially offset by the impact of approximately 490 basis points of negative foreign currency exchange rates.

The company's board of directors also authorized the payment of a regular quarterly cash dividend of $0.55 per common share, payable on October 6, 2020, to shareholders of record as of the close of business on September 15, 2020.

Looking ahead, the retailer said it is planning for third-quarter sales to be higher compared to last year but likely will not continue at the current quarter-to-date level of approximately 20 percent growth. However, it is not providing financial guidance for the full year.