Best Buy earnings: Stock sliding after missing third-quarter guidance

In this Nov. 23, 2013, file photo, shoppers enter a Best Buy in New York.Associated Press/Bebeto Matthews

Best Buy reported better-than-expected second-quarter results on Tuesday, but shares plunged as much as 7% in pre-market trading as guidance disappointed.

The electronics retailer earned an adjusted $0.91 a share, easily beating the $0.82 that analysts surveyed by Bloomberg were expecting. Revenue rose 4.9% versus a year ago to $9.38 billion, topping the $9.28 billion that was expected, while comparable sales were up 6.2% YoY.

“We are happy to report strong top- and bottom-line results for the second quarter that exceeded our expectations,”  CEO Hubert Joly said in the earnings release.

“Our comparable sales growth was helped by the favorable environment in which we operate and driven by how customers are responding to the unique and elevated experience we are building. We are particularly encouraged with the continued progress of our Net Promoter Scores and our continued market share gains. We are excited about the progress we are making on the implementation of our Best Buy 2020 strategy and the opportunities in front of us.” 

Best Buy boosted its guidance for adjusted earnings-per-share in the third quarter to between $0.79 and $0.84, but that was shy of the $0.91 that analysts were expecting. The retailer sees its full-year adjusted earnings per diluted share between $4.95 and $5.10, up from its previous outlook of $4.80 to $5.00. 

Shares of Best Buy were up 14% through Monday this year.

Ethel Jiang/Business Insider