After surpassing earnings and revenue expectations, Best Buy raises its full-year profit forecast.

• Best Buy surpassed earnings and revenue expectations in the latest quarter and subsequently raised its fiscal-year profit guidance on Thursday.
• The retailer has updated its forecast for full-year adjusted earnings per share, now expecting a range of $6.10 to $6.35, an increase from the previous range of $5.75 to $6.20.
• Best Buy has been trying to recover from a two-year sales decline.

The company raised its profit guidance for the fiscal year on Thursday after surpassing earnings and revenue expectations in the most recent quarter.

The retailer has raised its full-year adjusted earnings per share range to $6.10 to $6.35, from a previous range of $5.75 to $6.20. However, the company has lowered the top end of its guidance ranges for both full-year revenue and comparable sales.

In the company's press release, Best Buy CFO Matt Bilunas stated that we anticipate our industry to exhibit further stabilization in the second half of the year.

Shares of Best Buy jumped 6% in premarket trading Thursday.

Based on a survey of analysts by LSEG, how did the consumer electronics retailer perform for the period ended August 3 compared to Wall Street's expectations?

• Earnings per share: $1.34 vs. $1.16 expected
• Revenue: $9.29 billion vs. $9.24 billion expected

In contrast to the previous year, the company's net income for the quarter was $291 million, which amounts to $1.34 per share, compared to $274 million, or $1.25 per share.

In the previous quarter, net sales were $9.58 billion, but this quarter they decreased to $9.29 billion.

During the quarter, sales decreased by 2.3%, less than the 6.2% decline experienced in the previous year.

Best Buy has been trying to recover from a two-year sales decline caused by weaker consumer demand following unusually high sales during the Covid pandemic and as consumers become more cautious due to high inflation.

With the upcoming replacement cycle of pandemic-era tech purchases, the retailer aims to increase sales through marketing and operational initiatives. Best Buy announced in July that it will deploy trained sales teams in three key areas of its stores - computing, appliance, and home theater - and launch a marketing campaign featuring YouTube videos to attract customers.

The company announced that it was anticipating a surge in new tech gadget releases, including the launch of new iPads in May and AI-powered laptops advertised by.

In May, during the company's fiscal first-quarter earnings call, Best Buy executives stated that they anticipated sales trends to improve sequentially and industry stabilization to increase in 2024.

The latest research by market research firm Circana predicts that consumer electronics sales will decline by another 2% in 2024, following a downward trend.