Best Buy Co posted a 23 percent drop in quarterly profit on Thursday, but its adjusted results topped Wall Street estimates as the retailer said it got a boost from stronger-than-expected consumer demand.
While the top U.S. specialty consumer electronics retailer expects consumer spending to remain challenging, it forecast full-year earnings above current Wall Street estimates.
Shares rose 7.9 percent to $36.10 before the opening bell.
Earnings came to $570 million, or $1.35 a share, for the fourth quarter ended February 28, down from $737 million, or $1.71 a share, a year earlier.
Excluding restructuring and impairment charges, it said adjusted earnings were $1.61 per share. Analysts, on average, had been expecting it to earn $1.40 per share, according to Reuters Estimates.
Revenue rose 10 percent to $14.7 billion, helped by the opening of new stores and the inclusion of its European operations. Sales at stores open at least 14 months, or same-store sales, fell 4.9 percent.
Best Buy forecast earnings of $2.50 to $2.90 per share for its current fiscal year, while analysts, on average, were expecting $2.45 per share.
(Reporting by Nicole Maestri, editing by Dave Zimmerman)