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Best Buy profit beats estimates

Tuesday, August 23, 2016 - 01:12

Best Buy stock soars on much higher-than-expected quarterly profit and raised outlook. Bobbi Rebell reports.

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Best Buy's shares got a jolt on Tuesday, after the largest U.S. electronics retailer reported a much higher-than-expected quarterly profit and raised its earnings outlook. Online sales were helped by faster shipping and improvements in the checkout process and better search. And sales at established stores beat analysts' predictions. Big sellers included smartwatches, home theater systems, appliances, and computing products. Not so hot- mobile phones and gaming. Mike Bailey, director of research at FBB Capital Partners. (SOUNDBITE) MIKE BAILEY, DIRECTOR OR RESEARCH, FBB CAPITAL PARTNERS, (ENGLISH) SAYING: "It is pretty surprising. I think a lot of investors didn't anticipate any meaningful bounce out of Best Buy. This one has been sort of a deep-value name that's sort of gone up and down. We've seen them do meaningful restructuring. I think a lot of investors really thought that that part of of the story was over. We wouldn't see any meaningful beats or raises coming out of the company. So, it is a bit surprising." Bailey adds Best Buy still has challenges- including rival Amazon. The retailer's results were in contrast to weak performances in the electronics category by competitors, including Target and Wal-Mart Stores.

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Best Buy profit beats estimates

Tuesday, August 23, 2016 - 01:12