Best Buy (BBY) Stock Surges 12% on Earnings Beat Despite Weak Sales and Outlook
Best Buy shares rallied nearly 12% in premarket trading after the retailer posted better-than-expected fourth-quarter earnings, overshadowing disappointing revenue and a cautious full-year outlook. Adjusted earnings of $2.61 per share surpassed the $2.47 consensus, while revenue dipped 1% year-over-year to $13.81 billion, missing estimates.
The consumer electronics giant faces ongoing demand headwinds, with comparable sales declining 0.8% against expectations for modest growth. Management's guidance for the coming year fell short of analyst projections, forecasting EPS between $6.30-$6.60 versus the $6.66 consensus.
Investors focused on operational resilience as operating margins expanded to 5.2% despite softer sales. The dividend hike to $0.96 per share—now yielding highest in its sector ETF—signaled confidence in cash Flow stability during turbulent times.
