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Best Buy Affirms Full-Year Outlook Following First-Quarter Beat; Shares Surge

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Best Buy Affirms Full-Year Outlook Following First-Quarter Beat; Shares Surge

Best Buy (BBY) maintained its full-year guidance as the electronics retailer's fiscal first-quarter results came in stronger than expected, sending its shares soaring on Thursday.

The company continues to expect fiscal 2027 adjusted per-share earnings of $6.30 to $6.60 on revenue of $41.2 billion to $42.1 billion. Analysts in a FactSet survey are looking for $6.48 in non-GAAP EPS on revenue of $41.75 billion. Comparable sales are still projected to be down 1% to up 1%, while the Street anticipates a 0.4% increase.

For the quarter ended May 2, adjusted EPS rose to $1.28 from $1.15 a year earlier, surpassing the consensus estimate of $1.23. Revenue increased to $8.94 billion from $8.77 billion, while analysts expected $8.82 billion. Comparable sales grew 2%, exceeding the Street's 0.9% growth projection.

Gaming, computing, mobile phones and services drove domestic comparable sales, which rose 1.8%, the company said.

Shares of Best Buy soared 19% intraday Thursday. The stock is up about 15% since the start of the year.

The company is projecting comparable sales to grow about 1% in the second quarter as it laps last year's "very successful gaming launch" in June, Chief Financial Officer Matt Bilunas said on an earnings call, according to a FactSet transcript.

"Comparable sales have started strong in May, with month-to-date growth up high single digits," Bilunas said in a statement.

It's been years since Best Buy generated a high-single-digit increase in comparable sales even for a couple-week period, Truist Securities said in a note.

"This start seems to suggest that there could be upside to both (second-quarter) and the full-year guide that they just reiterated," Truist Managing Director Scot Ciccarelli wrote.

As previously announced, Best Buy Chief Executive Corie Barry will step down later this year, to be replaced by Jason Bonfig, the company's current chief customer, product and fulfillment officer.

Price: $76.60, Change: $+12.06, Percent Change: +18.68%

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