Best Buy stock surges 9% on strong earnings results

Best Buy (BBY.US) stock rose more than 9.0% during today's session after the electronics retailer posted upbeat quarterly figures. Company earned $2.98 per share, compared to analysts' estimates of $1.85 a share. Revenue of $11.85 billion also topped market expectations of $11.49 billion. Comparable-store sales rose a better-than-expected 19.6% and the company lifted its full-year sales guidance, expecting demand to remain strong even as pandemic-induced surge weakens.

Company expects that full-year comparable sales growth will increase to the range from  9% to 11% from previous 3% to 6% and revenue will range from $51 billion to $52 billion. For the fiscal third quarter, it expects revenue to range from $11.4 billion to $11.6 billion and same-store sales to decline between 1% and 3%.

In order to avoid supply chain bottlenecks faced by manufacturers and retailers across industries, Best Buy said it stocked up on "as much inventory as possible" in the previous months and the company is confident that it will avoid a shortage of goods during the holiday season. “Over the longer term, we are fundamentally in a stronger position than we expected just two years ago,” CEO Corie Barry said in a press release. “There has been a dramatic and structural increase in the need for technology.”

Best Buy (BBY.US) stock launched today's session with a massive bullish price gap and broke above the upper limit of the 1:1 structure and upper boundary of the wedge formation. If current sentiment prevails, upward move may accelerate towards all-time high at $128.70. If market sentiment changes, then nearest major support lies at $112.40. Source: xStataion5