Best Buy reported better-than-expected third quarter results as it preps for Black Friday and Cyber Monday sales.
The company reported third quarter net income of $277 million, or 99 cents a share, on revenue of $9.59 billion, up 2.9 percent from a year ago. Non-GAAP earnings were 93 cents a share.
Wall Street was looking for earnings of 85 cents a share on revenue of $9.56 billion. Best Buy is among the few retailers that have made the transition to omnichannel from a primarily brick-and-mortar approach. Walmart and Home Depot are two other retailers that are making good progress on the digital transition and efforts to better compete with Amazon.
Best Buy's same store sales were up 4.3 percent in the third quarter. The retailer said it has had same store sales topping 4 percent for six consecutive quarters.
Best Buy also completed its acquisition of health care services firm GreatCall during the quarter.
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As for the outlook, Best Buy also raised its guidance and projected fourth quarter revenue of $14.4 billion to $14.8 billion with same store sales growth of flat to up 3 percent. Non-GAAP earnings for the fourth quarter will bet between $2.48 a share and $2.58 a share.
For fiscal 2019, Best Buy is projecting revenue of $42.5 billion to $42.9 billion with non-GAAP earnings of $5.09 to $5.19 a share. Best Buy was projecting fiscal 2019 earnings of $4.95 a share to $5.10. For the fiscal year, Best Buy said same store sales will be up 4 percent to 5 percent.
Best Buy CEO Hubert Joly said the company is well positioned for the holiday season and is in a good inventory position. "We have continued to enhance our digital shopping experience and further improved our shipping speed," said Joly.
The company saw solid sales for consumer electronics, computing, mobile phones and appliances as well as entertainment.
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