Best Buy explodes 15% after earnings beat expectations

Best Buy shares surged by as much as 15% in pre-market trading on Tuesday after the company's second-quarter earnings results surpassed what analysts had expected.

This indicated that a turnaround led by CEO Hubert Joly gained traction, at a time when traditional electronics retailers struggled to grow sales and fend off online competition.

Sales at stores open for at least one year grew for the first time in three quarters. Analysts had forecast that sales at stores open for at least one year fell 0.5%, but they rose 0.8%.

The electronics retailer reported adjusted earnings per share from continuing operations of $0.57, beating the forecast for $0.43, according to Bloomberg. Revenue totaled $8.53 billion, versus $8.39 expected.

"We saw continued positive momentum in our online sales - delivering a second straight quarter of nearly 24% growth," said Joly in the earnings statement. Like other retailers, Best Buy has worked to boost its online sales as consumers shifted away from traditional stores.

To do this and grow sales, it cut costs, among other measures.

The company reaffirmed its full-year outlook for flat revenue growth, and raised its full-year forecast for operating income.

More to come ...