Best Buy Co Inc. (NYSE:BBY) Experienced a Better than Expected Profit

Best Buy Co Inc. (NYSE:BBY), the largest consumer electronics chain in the United States, reported excellent profits this quarter after seven previous quarters of declining sales. The share price of Best Buy Co Inc. (NYSE:BBY) fell by more than 10% throughout 2014, but today they were up by 6%. Non international online sales rose to $601 million, which is a 3.4% increase.

Hubert Joly, the Chief Executor of Best Buy Co Inc. (NYSE:BBY) said that several factors will influence the fourth quarter performance which include low margins and faster online sales. The competition remains fierce as many customers choose to shop online for their appliances and electronic needs. In the last couple of years, Best Buy Co Inc. (NYSE:BBY) have cut jobs, removed layers of management and closed stores in an effort to boost cash reserves.

Overall, the business has showed signs of recovery in this third quarter thanks to a revenue increase. This is due to high demands for computers, appliances and televisions. This is the first signs of growth in several quarters.

Best Buy Co. Inc. (NYSE: BBY), a major retailer of electronics, reported adjusted earnings per share of $0.32 and revenue exceeding $9.37. Just 12 months ago, the EPS (earnings per share) were $0.18. Sales rose 2.2% this quarter and this is great news as store sales only rose 0.3% in the same period a year ago. But internationally, sales fell by 3% but that is still only less than half of the decrease that was experienced the prior year.

Gross profit margins for Best Buy Co Inc. (NYSE:BBY) fell slightly, from 23.5% to 23.0% which is due, most likely, to structural investments, increase in mobile business, more revenue generated from gaming products and a new credit card agreement.

Looking ahead, toward the fourth quarter, Best Buy Co Inc. (NYSE:BBY) expects revenue and sales to be flat, year over year. As stated by the Chief Financial Officer, the profit rate could rise, but the SG&A spending will be flat.

The loss of revenue and a poor exchange rate could close Best Buy stores in China and Canada. That being said, the CEO of Best Buy Co Inc. (NYSE:BBY) is excited about their holiday plan as they enter the fourth quarter.

Although Best Buy Co Inc. (NYSE:BBY) still has some tough times ahead, with competitive pricing and low margin products, they seem to be back on the right path.

Best Buy Co Inc. (NYSE:BBY) not only sells high quality electronics, to consumers, but their highly qualified staff is able to offer incomparable advice. More than 1.5 billion customers regularly visit their brick and mortar stores as well as their website.

Share prices were up approximately 7.5% in the pre-market trading and Best Buy Co Inc. (NYSE:BBY) opened the stock market today at $38.54 per share and at 10:50 a.m. Eastern Daylight time, it is 38.47. The 52 week outlook ranges between 22.15 and 43.19 with a market cap. of 13.46 billion. Currently, they are 80% inst. own.