Best Buy (NYSE: BBY) reported Q2 EPS of $0.69, $0.06 better than the analyst estimate of $0.63. Revenue for the quarter came in at $8.94 billion versus the consensus estimate of $8.66 billion.

Comps rose 5.4%, versus the consensus of a 2.1% rise.

“We are pleased today to report strong top and bottom line growth for the second quarter of fiscal 2018,” said Hubert Joly, Best Buy chairman and CEO. “Our higher-than-expected comparable sales of 5.4% were driven by stronger consumer demand for technology products and by the strong execution of our strategy. Against a backdrop of continued healthy consumer confidence, we believe broad-based product innovation is resonating with consumers and driving higher spend. And, with our effective merchandising and marketing activities, combined with our expert advice and service available online, in-store and in-home – we are garnering an increasing share of those dollars.”

Joly continued, “I want to thank all our associates across the U.S., Canada and Mexico for their hard work, dedication and customer focus as we Build the New Blue. Without them, none of this is possible.”

Best Buy CFO Corie Barry commented, “Today we are raising our topline guidance and are now expecting full year FY18 revenue growth of approximately 4.0% versus our previous outlook of 2.5%. On the profitability side, we are now expecting full year non-GAAP operating income growth3 of 4.0% to 9.0% versus our previous outlook of 3.5% to 8.5% growth. This updated guidance reflects stronger-than-originally-expected second half revenue performance with profitability roughly in line with our previous expectations. The increased topline expectations are being driven by the anticipation of continued positive industry and consumer momentum, coupled with the impact of product launches. From a profitability perspective, while our original full year guidance anticipated an increased level of investments for FY18, we have made strategic decisions to proactively make additional Q3 and Q4 investments to continue to drive our Best Buy 2020 strategy forward.”

GUIDANCE:

Best Buy sees Q3 2018 EPS of $0.75-$0.80, versus the consensus of $0.65.

Best Buy is providing the following Q3 FY18 financial outlook:

• Enterprise revenue of $9.3 billion to $9.4 billion
• Enterprise comparable sales growth of 4.5% to 5.5%
• Domestic comparable sales growth of 4.5% to 5.5%
• International comparable sales change of flat to 3.0%
• Non-GAAP effective income tax rate of 32.0% to 32.5%3
• Diluted weighted average share count of approximately 305 million
• Non-GAAP diluted EPS of $0.75 to $0.803

Best Buy is updating its full year FY18 financial outlook to the following:

• Enterprise revenue growth of approximately 4.0%
• Enterprise non-GAAP operating income growth rate of 4.0% to 9.0%
• Enterprise non-GAAP effective income tax rate of approximately 34.5%
• On a 52-week basis, Enterprise revenue growth of approximately 2.5%
• On a 52-week basis, Enterprise non-GAAP operating income growth rate of 2.0% to 6.0%

For earnings history and earnings-related data on Best Buy (BBY) click here.