Best Buy Earnings: Here’s Why Investors are Buying Shares Now

Best Buy Co. Inc. (NYSE:BBY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 11.32%.

Best Buy Co. Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 23.08% to $0.32 in the quarter versus EPS of $0.26 in the year-earlier quarter.

Revenue: Decreased 11.82% to $9.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Best Buy Co. Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.12. It beat the average revenue estimate of $9.13 billion.

Quoting Management: Hubert Joly, Best Buy president and CEO, commented, “In November at our investor meeting, we talked about the two problems we had to solve: declining comparable store sales and declining operating margins. Since that time, the resolution of these two problems has become our Renew Blue rallying cry and the organization’s goals and objectives have been prioritized accordingly. While we are clear there is much more work ahead, we have made measurable progress since we unveiled Renew Blue last year, including near flat comparable store sales, substantive cost take outs, and better-than-expected earnings in the past three consecutive quarters.”

Key Stats (on next page)…

Revenue decreased 0.85% from $9.38 billion in the previous quarter. EPS increased 0% from $0.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.1 to a profit $0.09. For the current year, the average estimate has moved up from a profit of $2.18 to a profit of $2.2 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)