Improving Laptop, TV Sales Boost Best Buy

Better sales of notebook computers and flat-panel TVs helped Best Buy’s fourth-quarter earnings rise 37 percent, the electronics retailer said Thursday.

The news sent shares up nearly 7 percent in premarket trading.

Profit for the three months ended Feb. 27 rose to $779 million, or $1.82 per share, from $570 million, or $1.35 per share. Analysts polled by Thomson Reuters, on average, predicted a profit of $1.79 per share.

Revenue increased 12 percent to $16.55 billion. Analysts predicted revenue of $16.08 billion.

Higher sales of notebook computers, flat-screen TVs and cell phones were partly offset by lower selling prices. Sales of music and movies fell.

Sales in stores open at least 14 months rose 7 percent during the key holiday quarter. That and similar measure is important for retailers because it measures growth at existing stores rather than from newly opened ones.

Best Buy has gained market share since rival Circuit City liquidated last year, but competition with discounters and online retailers remains tough.

The company said it believes it took a bigger piece of the market for flat-panel TVs, notebook computers, cell phones and digital imaging during the quarter.

For the year, profit rose 35 percent to $1.32 billion, or $3.10 per share. Revenue rose 10 percent to $49.69 billion.

The company says it expects a profit of $3.45 to $3.60 per share in the fiscal year ending in February 2011. That is better than the $3.37 analysts predict.

Best Buy expects revenue of $52 billion to $53 billion, in line with analyst expectations of $52.14 billion.

It expects sales in stores open at least 14 months to rise 1 percent to 3 percent during the year.

Best Buy, based in Minneapolis, expects to open 50 to 55 new large-format Best Buys during the year and 75 to 100 small-format stores, mainly standalone stores selling mobile devices in the U.S. It also plans to open 10 to 15 Five Star stores in China.

Shares rose $2.76, or 6.7 percent, to $43.94 during premarket trading. They’re nearing levels not seen since mid-December, when shares peaked at $45.37 then tumbled on worries about thinning profit margins.

The stock has traded between $31.25 and $45.55 during the past year.

MAE ANDERSON, AP Retail Writer NEW YORK