Best Buy Co. Inc.'s shares dropped 5.7% in premarket trading on Aug. 29 after the retailer lowered the top end of its revenue guidance but raised its earnings guidance for fiscal 2020. The specialty retailer also posted second quarter earnings that beat analysts' expectations.
For fiscal 2020, the electronics retailer now expects non-GAAP diluted EPS to range between $5.60 and $5.75 compared to its previous projection of $5.45 to $5.65. Total revenue is now expected to be between $43.1 billion and $43.6 billion, compared to the previous forecast range of $42.9 billion to $43.9 billion.
For the third quarter, non-GAAP diluted EPS is expected to be between $1.00 and $1.05, while total revenue is projected to be between $9.65 billion and $9.75 billion. Comparable sales in the third quarter are expected to grow between 0.5% and 1.5%.
Best Buy's updated outlook for fiscal 2020 factors in the potential impact of raised tariffs on Chinese imports, the uncertainty of customer buying behavior in the second half of the year and the retailer's first-half performance, CFO Matt Bilunas said in a statement.
Non-GAAP diluted EPS for the second quarter ended Aug. 3, grew 19% to $1.08 from 91 cents in the year-earlier quarter, beating the mean consensus estimate for normalized EPS of 99 cents, according to data compiled by S&P Global Market Intelligence.
Revenue for the second quarter rose to $9.54 billion from $9.38 billion in the year-earlier quarter, while comparable sales grew 1.6% compared to 6.2% in the year-ago period.
In premarket trading, Best Buy's shares were down 5.7% at $65.07.
