Best Buy shares surge as company’s earnings and sales top analysts’ estimates. On Wednesday, the Best Buy’s stocks soared after the company’s fourth-quarter earnings topped analysts’ expectations.
The electronics retailer said holiday sales of appliances, wearables, and smart home devices boosted the Q4 earnings. In addition, the popularity of the “Fortnite” video game, which raised purchases of accessories like headphones as well as gaming consoles, also fueled the sales
The company’s shares had declined nearly 17 percent over the past 12 months. On Wednesday, the stock was rising around 16 percent.
Best Buy reported that net income, for the fourth quarter, grew to $735 million, or $2.69 per share, from $364 million, or $1.23 a share, from a year ago. Overall, the company reported earnings of $2.72 a share, which topped estimates of $2.57.
Revenue declined to $14.80 billion from $15.36 billion a year ago, while analyst has forecasted $14.70 billion for the quarter. Best Buy stores’ sales surged 3 percent, topping estimation 2 percent growth. Same-store sales saw growth of 4.8 percent in fiscal 2019, according to Best Buy.
Now , the company expects profits from new devices such as foldable smartphones. It also believes that its acquisition of GreatCall will create new opportunity to do more with health tech.
“Digital health is an exciting area with the enormous opportunity for the use of technology to help customers with their health, fitness, sleep, etc. — across multiple age groups, from babies to seniors,” BestBuy CEO Hubert Joly said.