Best Buy reported third-quarter earnings on Tuesday that beat analysts' expectations ahead of the holiday season.
Best Buy reported third-quarter earnings Tuesday morning that beat expectations on the top and bottom lines.
The company raised its forecast for fiscal 2020 adjusted earnings to a range of $5.81 to $5.91 per share from a prior estimate of $5.60 to $5.75 per share.shares surged more than 4% in premarket trading after reporting earnings and revenue that beat analysts' expectations while also raising its earnings guidance.Earnings per share, adjusted: $1.13 vs. $1.03 expectedThe company raised its forecast for fiscal 2020 adjusted earnings to a range of $5.81 to $5.
The electronics retailer said last quarter that although it has tried to factor the tariffs into its guidance, uncertainty is looming. Some of Best Buy's products were hit with tariffs that went into effect on Sept. 1, and more could be hit with the 15% duty on Dec. 15, including mobile phones, laptops and gaming consoles.said it expects to grow same-store sales in fiscal 2020 under Barry's leadership.
Best Buy has outpaced consumer electronic retail sales by an average of 5% going back to 2016, but its tariff exposure is creating uncertainty, Piper Jaffray analysts Peter Keith said in a note on Friday. Although no one knows "the final outcome of trade discussions," the removal of the Dec. 15 levy would "remove notable overhang" for Best Buy.
Analysts at Wedbush said that the duties that took effect on Sept. 1 and June 15 could "significantly alter Black Friday purchase decisions" because of related price increases on tariffed items.that holiday sales during November and December will grow between 3.8% and 4.2% compared to last year's holiday season.
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