Consumer electronics retailer Best Buy on Tuesday beat expectations for its fiscal third quarter amid weakened consumer spending. BBY stock jumped on the news.
The Richfield, Minn.-based company earned an adjusted $1.38 a share on sales of $10.59 billion in the quarter ended Oct. 29. Analysts polled by FactSet had predicted earnings of $1.03 a share on sales of $10.31 billion. On a year-over-year basis, Best Buy earnings sank 34% while sales dropped 11%.
It was Best Buy's fourth straight quarter of declining sales and earnings on a year-over-year basis.
Best Buy saw sales declines across almost all categories in the third quarter. The biggest drops were in computing and home theater products.
BBY Stock Pops After Report
On the stock market today, BBY stock popped 12.8% higher to 79.88.
Chief Executive Corie Barry expressed optimism about the holiday shopping season.
"We are excited about the promotions and values we have planned," Barry said in a news release. ""We have strategically and effectively managed our inventory flow based on a shopping pattern that we believe looks more similar to historical holiday periods, with customer shopping activity concentrated on Black Friday week, Cyber Monday and the two weeks leading up to Dec. 25."
BBY stock has a poor IBD Composite Rating of 27 out of 99, according to IBD Stock Checkup. The Composite Rating scores a stock's key growth metrics against all other stocks regardless of industry group.
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