Shares of Best Buy (NYSE: BBY) moved higher to hit a fresh record high near $120.00 on the back of a strong performance the company delivered in the second quarter of the year. 

Best Buy posted better-than-expected sales growth results today for Q2 2020, driven by the biggest-ever surge in online sales on a quarterly basis as clients massively bought computers, kitchen utilities and other products during the coronavirus lockdown.  

Online sales skyrocketed 242% in the United States, compared to the year-ago period.  In-store sales climbed by 5.8%, beating the estimated consensus of 2.3.%. The same-store sales increase reached a 2-year high, in spite of them being open only for the month and a half in the second quarter. 

Matt Bilunas, CEO of Best Buy, said he believes the company will register the year-over-year sales increase in the Q3 as well but pointed out that the sales growth probably won’t continue at the same rate. Bilunas added that the company will now face bigger expenses due to the reopening of its stores. 

The company reported quarterly adjusted earnings per share of $1.71, against the estimated $1.08. The reported revenue for the second quarter was $9.91 billion, higher than the expected $9.71 billion.

Shares of Best Buy initially gapped around 3% to print an all-time high at $119.46. However, shares then fell as the retailer failed to deliver its future earnings outlook, in addition to likely profit taking from investors as they moved to capitalize on their profits. 

Best Buy stock price now trades below $112 as the buyers take a step back after pushing the price action to an all-time high. The latest rally ended at $161.8% Fibonacci extension line, which was always a major target for the buyers. Initial support sits at $105.50.

Best Buy sales growth for the second quarter beat Wall Street estimates, thanks to a biggest-ever online sales increase of 242%, launching shares to a record high. 

The post Best Buy stock price hits record highs as Q2 earnings top estimates appeared first on Invezz.