10:40 AM EDT, 08/29/2024 (MT Newswires) -- Best Buy ( BBY ) lifted its full-year earnings outlook on Thursday following better-than-expected fiscal second-quarter results, as the electronics retailer saw gains in its domestic tablet and computing categories.

Adjusted earnings are now set to be in a range of $6.10 to $6.35 per share for fiscal 2025, up from the company's prior guidance of $5.75 to $6.20. The consensus on Capital IQ is for normalized EPS of $6.10. The stock jumped 13% in Thursday trading.

"As we look to the back half of the year, we expect our industry to continue to show increasing stabilization," Chief Financial Officer Matt Bilunas said in a statement. "We are raising our non-GAAP diluted EPS guidance range as we largely flow through the better-than-expected profitability of the first half of the year."

The retailer anticipates revenue between $41.3 billion and $41.9 billion for the ongoing fiscal year, reflecting a lower bottom end than the prior forecast's $42.6 billion estimate. Comparable sales are expected to decline 1.5% to 3% versus the prior outlook range of flat to a 3% decrease. The Street is looking for revenue of $41.79 billion and expecting same-store sales to be down 1.8% for the year.

"From a major category standpoint, we continue to expect sales in our computing category and services to show growth for the year," Chief Executive Corie Barry said on an earnings call, according to a Capital IQ transcript. "While most other categories are expected to be down for the year, we expect ongoing improvement in their trends at the high end of our annual (comparable) sales guidance."

For the quarter ended Aug. 3, Best Buy's ( BBY ) adjusted EPS increased to $1.34 from $1.22 last year, topping analysts' $1.16 estimate. Revenue slipped to $9.29 billion from $9.58 billion in the prior-year quarter, but surpassed the Street's view for $9.25 billion.

Comparable sales decreased 2.3%, amid declines in the company's domestic and international operations, compared with the market's projection for a 3.2% fall. "From a category perspective, we drove comparable sales growth in tablets, computing and services," Barry said on the call. The domestic tablet and computing categories together posted comparable sales growth of 6% on an annual basis, according to the CEO. This growth was partially offset by declines in appliances, home theater and gaming.

The retailer expects comparable sales in the ongoing quarter to be down roughly 1%, Bilunas said on the call. Analysts on Capital IQ currently estimate a 0.6% decrease in same-store sales for the quarter.

Price: 98.41, Change: +10.62, Percent Change: +12.10