Best Buy's Q2 numbers beat expectations

Best Buy surged in pre-market trade after the consumer electronics retailer’s second-quarter results beat expectations.

For the quarter to 1 August, net earnings rose to $198m or 61 cents a share, from $164m or 46 cents a share in the same quarter of 2015, on broadly flat revenue of $8.5bn. Analysts had been expecting revenue of $8.4bn.

Non-GAAP diluted earnings per share from continuing operations came in at 57 cents a share, up 16% from the second quarter of last year.

The company said domestic segment comparable sales rose 0.8% versus analysts’ expectations of a 0.6% decline.

Chairman and chief executive officer Hubert Joly said: “We saw continued positive momentum in our online sales – delivering a second straight quarter of nearly 24% growth. We also continued to deliver cost savings and drive efficiencies in the business, a discipline that is critical to our ability to invest in our future.

“We are encouraged by the quality of our execution, the momentum in our business and the strength of our first half financial results.”

Best Buy shares were up 14.5% to $32.80 in pre-market trade.