Best Buy's third-quarter earnings on Tuesday exceeded Wall Street's expectations as the company continued to see strong demand for technology during the coronavirus pandemic.
The company's shares fell nearly 3% in premarket trading early Tuesday.
Despite its strong third quarter, the retailer declined to provide an outlook for the fourth quarter – a significant time to buy electronics and tech over the holidays. due to the uncertainty caused by the pandemic.
Here's what the company did in the third fiscal quarter ended October 31:
Earnings per share: $ 2.06, adjusted versus $ 1.70 expected based on Refinitiv consensus estimates. Revenue: $ 11.85 billion versus $ 11.00 billion according to Refinitiv estimates. Revenue growth in the same store: 23% versus 13.6% according to StreetAccount estimates
Best Buy reported net income of $ 391 million, or $ 1.48 per share, for the third quarter, up from $ 293 million or $ 1.10 per share a year earlier.
With no items, it made $ 2.06 per share, more than the analysts surveyed by Refinitiv expected $ 1.70 per share.
Sales rose $ 11.85 billion, up from $ 9.76 billion last year, beating Wall Street's expectations of $ 11 billion.
The company's sales in the same store increased a total of 23%. In the US, sales in the same store increased 22.6%. They grew internationally by 27.3%.
Online sales in the US were $ 3.82 billion in the third quarter. It was up 174% year over year and accounted for more than a third of the company's total US sales. It was the company's second-best quarter for US online revenue ever, and even outperformed the company's e-commerce sales in the last holiday season.
During the coronavirus pandemic, Best Buy sales have been given a boost by home trends as more and more consumers need technology to set up their home office or help their children go to school remotely. The company has decided to close its stores and only switch to roadside collection in the first few months of the global health crisis – despite being considered an essential retailer.
In the third quarter, CEO Corie Barry said customers had continued to turn to the big box retailer for everything from kitchen gadgets and laptops for school to home theater equipment.
"The current environment has underscored our goal of adding technology to life, and the skills we use and strengthen now will help us execute our strategy in the future," she said in a press release.
At the close of trading on Monday, Best Buy's shares were up 39% that year, giving the company a market cap of $ 31.6 billion.
Read the full press release on Best Buy earnings here.