Best Buy surges 18% on earnings beat as MacBook Neo boosts sales

Key Takeaways:

Best Buy reported Q1 revenue of $8.9 billion, topping consensus of $8.8 billion.
Same-store sales rose 2%, far exceeding the 0.9% Wall Street expected.
The stock surged 18% as Jefferies flagged further upside potential.

Best Buy reported Q1 revenue of $8.9 billion and EPS of $1.28, beating consensus estimates on both metrics.

"The results were driven by positive same-store sales growth across the majority of our major product categories," Chief Executive Officer Corie Barry said.

Same-store sales rose 2%, well above the 0.9% analysts had projected and reversing a 0.8% decline in the fiscal fourth quarter. Adjusted earnings of $1.28 per share compared with $1.15 a year earlier and topped the $1.22 consensus estimate.

Metric	Actual	Consensus	Beat/Miss
Revenue	$8.9B	$8.8B	+1.1%
EPS	$1.28	$1.22	+$0.06
Same-store sales	+2.0%	+0.9%	+1.1pp

Shares surged 18% on Thursday, adding billions in market value. The strong quarter was fueled by the launch of Apple's MacBook Neo and higher tax refunds, while Best Buy's advertising and marketplace initiatives also contributed, Barry said.

The electronics retailer maintained its full-year guidance, forecasting net sales to decline 2% to be flat and adjusted earnings of $1.00 to $1.60 per share. The outlook suggests management expects the momentum from product launches to continue through the year.

Jefferies analysts see further upside, citing the same-store sales acceleration and margin improvement as catalysts. The beat marks a sharp turnaround from the holiday quarter, when consumers pulled back on discretionary spending.

The guidance raise signals management expects consumer electronics demand to hold up through the year. Investors will watch the Q2 earnings call for updates on MacBook Neo sales momentum and marketplace growth.

This article is for informational purposes only and does not constitute investment advice.