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These Non-Headline Numbers Show Why Best Buy Earnings are Insanely Good (BBY)

5532842468_21bef14739_bBest Buy (NYSE: BBY) earnings are in and they’re insanely good!

The company reported second quarter non-GAAP EPS of $0.32 versus consensus of $0.12–a 20 percent beat and a 23 percent year over year increase. Revenue was reported at $9.3 billion versus the estimated $9.13 billion. Although that represents a 12 percent decline year over year, there are some solid reasons for the drop.

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The drill-down looks like this. Domestic revenue was $7.81 billion representing a 0.1 percent increase from last year. Over the past year the company opened 57 Best Buy Mobile stand alone stores which were enough to offset the traditional store decline of 0.4 percent.

But the release also notes that Best Buy retail store sales were impacted by disruptions stemming from the deployment of Samsung Experience Shops, Windows Stores, and other improvements that are receiving favorable customer responses. The company said that if the cost of the impacts was excluded, comp. store sales would have been higher. Online sales were $477 million–an increase of 10.5 percent year over year. Margins increased from 24.3 percent to 27.4 percent.

The results wouldn’t be amazing except for the fact that it wasn’t long ago that this was a company destined to go the way of most the big box electronics stores before it. Remember Circuit City? When the company announced its initiatives to directly battle the showrooming craze by matching online prices, this set in motion a turnaround that few saw coming.

Year to date, Best Buy is up 160 percent and with the stock indicated higher by double digits on the back of today’s earnings release, look for a continuation of the move. There is still softness in some segments of the report but by most measures, this is a blowout!

[stock-tools exchange="NASDAQ" symbol="GLD" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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