Electronics retailer Best Buy Co., Inc. (BBY) reported Thursday a 27 percent increase in profit for the first quarter from last year, which was impacted by restructuring charges, and higher revenues.
Both adjusted earnings per share and revenues for the quarter topped analysts' estimates. The company also provides guidance for the second quarter and reiterated its outlook for the full-year 2020.
Best Buy's net earnings for the quarter increased to $265 million or $0.98 per share from $208 million or $0.72 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter was $1.02 per share, compared to $0.82 per share a year ago. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.
Enterprise revenues for the quarter edged up to $9.14 billion from $9.11 billion in the same quarter last year. Analysts had a consensus revenue estimate of $9.13 billion.
Enterprise comparable sales rose 1.1 percent, compared to an increase of 7.1 percent last year.
Domestic revenue edged up 0.8 percent from last year to $8.48 billion, mainly driven by comparable sales growth of 1.3 percent and revenue from GreatCall, Inc., partially offset by the loss of revenue from 105 Best Buy Mobile and 12 large-format store closures in the past year. Domestic online revenue of $1.31 billion increased 14.5 percent from last year.
However, international revenue decreased 5.2 percent to $661 million, driven primarily by the impact of approximately 390 basis points of negative foreign currency exchange rates and a comparable sales decline of 1.2%, which was driven by Canada.
Looking ahead to the second quarter of 2020, Best Buy projects adjusted earnings in a range of $0.95 to $1.00 per share and enterprise revenue between $9.50 billion and $9.60 billion. Analysts expect earnings of $5.66 per share on revenues of $9.13 billion for the quarter.
For fiscal 2020, Best Buy reiterated its forecast for adjusted earnings in the range of $5.45 to $5.65 per share and enterprise revenue between $42.90 billion and $43.90 billion. The Street expects earnings of $0.96 per share on revenues of $43.56 billion for fiscal 2019.
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