Investing.com - Best Buy (NYSE:BBY) shares jumped in premarket trade on Wednesday, after the largest U.S. consumer tech retailer raised its full-year earnings forecast and beat fourth-quarter estimates.
Best Buy now expects full-year 2020 earnings per share of between $5.45 and $5.65, compared to forecasts for full-year EPS of $5.49.
The electronics retailer sees full-year 2020 revenue in a range of $42.9 billion to $43.9 billion.
It also announced plans to raise its quarterly dividend by 11% to 50 cents a share and a new share buyback plan valued at $3 billion.
Shares rose 9.5% in premarket trade to $66.05.
For the fourth-quarter, Best Buy, which gets nearly half its U.S. revenue from mobile phones and computers, reported earnings and sales that beat analysts’ expectations.
The retailer reported adjusted earnings per share of $2.72 on revenue of $14.80 billion. Analysts polled by Investing.com expected the company to report a profit of $2.56 a share on revenue of $14.68 billion.
Best Buy’s U.S. same-store sales climbed 3.0% in the 13-week fourth quarter ended Feb. 2, topping analysts’ expectations of a 1.8% increase, according to IBES data from Refinitiv.
Domestic comparable online sales grew 9.3%.
“We are very proud of the financial results we have just delivered,” said Hubert Joly, Best Buy chairman and CEO.
Best Buy’s CFO and Strategic Transformation Officer, Corie Barry, commented, “Going forward, our priority in fiscal 2020 is to continue to transform the company by bringing to market solutions that solve real customer needs and by building customer relationships."