Best Buy Tops Sales Forecast, Holds Outlook; Hormel Slashes Profit Guidance

Best Buy reported fiscal second-quarter revenue of $9.44 billion, topping analysts’ $9.24 billion consensus and rising 1.6% from a year earlier. Adjusted earnings came in at $1.28 a share, exceeding forecasts, although net income fell 28% to $186 million as margins remained under pressure. The electronics retailer reaffirmed its full-year outlook, projecting adjusted earnings of $6.15 to $6.30 a share and revenue of $41.1 billion to $41.9 billion. Management continues to expect comparable sales to range from a 1% decline to a 1% increase, with third-quarter trends seen mirroring the second quarter. In a separate update, Hormel Foods posted fiscal third-quarter adjusted earnings of $0.35 a share, short of the $0.40 consensus, while net sales edged past estimates at $3.03 billion. The maker of Spam and Skippy cut its full-year forecasts, trimming adjusted earnings guidance to $1.43–$1.45 a share and overall EPS to $1.33–$1.35, citing ongoing cost pressures.