Why Best Buy Stock Just Jumped 16.5%

Best Buy (NYSE: BBY) stock is finally taking off! After lagging the stock market for much of the past year, Best Buy shares soared 16.5% through 10:15 a.m. ET after reporting a big earnings beat Thursday morning.

Analysts forecast Best Buy would earn only $1.16 per share on sales of just over $9.2 billion. Instead, Best Buy reported a profit of $1.34 per share and sales approaching $9.3 billion.

That's the good news. Now, here's the bad: Best Buy may have exceeded expectations, but its same-store sales still declined 2.3%, and total sales were off 3.1% year over year. Commenting on sales trends, CEO Corie Barry described consumers as "seeking value and sales events" – which doesn't sound great for profit margins.

Source Fool.com