Shares of Best Buy Co. Inc. rose sharply in after-hours trading Wednesday after the company posted better-than-expected earnings and same-store sales, despite a slowdown in electronics sales.
Best Buy reported a 7 percent increase in revenue in the third quarter of fiscal 2018, to $9.44 billion from $8.83 billion in the same period last year. On an adjusted basis, earnings per share were also up, from $1.36 to $2.12, which beat analysts’ estimates of $1.74.
The company’s same-store sales, which are closely watched as a measure of retail health, rose a better-than-expected 3.2 percent. But sales of consumer electronics, which make up a crucial portion of Best Buy’s business, declined by 1.5 percent. Domestic online sales jumped nearly 20 percent for the quarter.
The upbeat earnings report was enough to send Best Buy’s stock up in after-hours trading Wednesday. The company’s stock was up more than 4 percent as of 5:30 p.m. ET.
Following the release of the earnings report, Best Buy said it expected fiscal 2018 earnings per share to come in at the high end of its previously stated range of $5. 35 to $5.45. The company also said it expected to return $3 billion in capital to shareholders through stock buybacks and dividends, a move that should also help lift shares.