NEW YORK (Reuters) - Best Buy reported a higher-than-expected quarterly profit and raised its full-year outlook as it benefited from strength in its mobile phone business, and its shares rose nearly 8 percent.
The largest consumer electronics chain, which operates stores under the Best Buy, Best Buy Mobile, and Car Phone Warehouse names, said its operating margin rose 1.1 percentage points to 3.6 percent in the second quarter ended August 28.
Best Buy has stepped up its focus on selling more mobile phone, broadband and TV connections in a bid to boost margins while prices for televisions fall.
"We're still in the early stages of our Connected World strategy, but this quarter's results give me continued confidence that we're making progress," Chief Executive Officer Brian Dunn said.
Net profit rose to $254 million, or 60 cents a share, in the second quarter from $158 million, or 37 cents a share, a year earlier.
Analysts on average were expecting a profit of 44 cents a share, according to Thomson Reuters I/B/E/S.
Sales rose about 3 percent to $11.34 billion, but missed the analysts' average estimate of $11.54 billion. Sales at stores open at least for 14 months fell 0.1 percent.
The company raised its fiscal 2011 earnings forecast to a range of $3.55 to $3.70 a share, up from its prior outlook of $3.45 to $3.60.
Best Buy shares rose 7.9 percent to $37.40 in premarket trading.
(Reporting by Dhanya Skariachan, editing by Dave Zimmerman and Lisa Von Ahn)
