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Best Buy's Profit Soars

Best Buy Co.'s fiscal second-quarter net income rose 60 percent as shoppers bought cell phones, appliances and tablet computers.

Results were also boosted by profit from Best Buy's standalone mobile stores and lower promotional and loyalty program costs. They handily beat expectations and the company raised its full-year outlook. Shares jumped 8 percent in premarket trading.

The electronics retailer says net income for the three months ended Aug. 28 rose to $254 million, or 60 cents per share. That compares with $158 million, or 37 cents per share, last year.

Analysts polled by Thomson Reuters, on average, predicted net income of 44 cents per share.

The company bought back $600 million in shares during the quarter, which helped earnings by about a penny.

Revenue rose 3 percent to $11.34 billion, from $11.02 billion last year.

Sales of TVs, video game consoles, video games, music and movies fell. TVs have been a weak spot for electronics sellers as price declines, which drive new purchases, are less dramatic than in the past.

Revenue in stores open at least 14 months edged down 0.1 percent. Revenue at stores open at least a year is a key indicator of a retailer's performance because it excludes growth at stores that open or close during the year.

Domestic revenue rose 3 percent to $11.3 billion while international revenue rose 6 percent to $2.9 billion.

Best Buy said its domestic market share fell slightly during the quarter because a shortage of Apple Inc.'s iPads during the early days after its release, continued weakness in entertainment software and fewer home theater sales.

However, Best Buy said it expects its market share to rise for the full fiscal year.

The number of customers in stores fell, but those who came in spent more.

Best Buy now expects full-year net income of $3.70 per share, up from $3.55. That includes a benefit of 10 cents per share because of share repurchases. Analysts expect $3.36 per share.

The company expects full year revenue to grow 5 percent to $52 billion. Analysts expect $52.03 billion.

It expects revenue in stores open at least 14 months to rise between 1 percent and 2 percent.

Shares rose $2.81, or 8.1 percent, to $37.46 during premarket trading.