Best Buy reported second-quarter adjusted earnings of $1.47 per share, up 15% and ahead of the Zacks Consensus Estimate of $1.37, while revenues rose 3.6% to $9.78 billion and enterprise comparable sales advanced 4.1%. The retailer raised its fiscal 2027 revenue guidance to $42.3-$42.8 billion and adjusted earnings guidance to $6.70-$6.90 per share, with comparable sales now expected to increase 1.9-3%, up from a prior range of a 1% decline to 1% growth. Domestic comparable sales rose 4.5% and domestic online comparable sales increased 5.1%, with the domestic gross profit rate expanding 60 basis points to 24%, helped by Marketplace, Best Buy Ads and about $34 million of tariff refunds. Computing delivered its 10th consecutive quarter of positive comparable sales growth and mobile phones posted a sixth straight quarter of growth, while combined sales of AI glasses, trading cards and health rings more than doubled year over year and contributed about one percentage point to comparable sales growth. Management expects computing growth to slow in the second half as comparisons get tougher and higher memory costs flow into the assortment, and the stock trades at 12.5X forward 12-month consensus EPS estimate, above its five-year median of 11.5X, carrying a Zacks Rank #3 (Hold).
Target Corporation
Walmart Inc.Best Buy Co. IncBest Buy beat Q2 earnings and raised fiscal 2027 revenue and EPS guidance.
