Best Buy sales get Carphone boost, stops buyback

LONDON, May 8 (Reuters) - U.S. consumer electronics retailer Best Buy (BBY.N), which is spending $2.1 billion on part of Britain's Carphone Warehouse (CPW.L), said on Thursday the deal should boost this year's revenue by $5 billion to around $48 billion.

Best Buy said the purchase of a 50 percent stake in Carphone Warehouse's retail business, which has 2,400 European stores, should boost earnings but it will cancel its planned share buyback to help pay for the deal.

Best Buy had said it would buy back $800 million of shares in fiscal 2009.

Best Buy was expected to make $43.2 billion in revenue this year before Thursday's deal, according to a Reuters poll.

It made $40 billion last year.

The agreed deal is expected to boost its diluted earnings per share by between $0.05 and $0.07 in 2008/09, taking into account the effect of the cancelled share buyback, it said.

Analysts had expected earnings per share of $3.28 this year, according to Reuters Estimates. (Reporting by Chris Wills; Editing by David Holmes)