Best Buy (BBY) Updates Q2 Earnings Guidance

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Best Buy (NYSE:BBY) updated its second quarter earnings guidance on Thursday. The company provided earnings per share guidance of $0.95-1.00 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.97. The company issued revenue guidance of $9.5-9.6 billion, compared to the consensus revenue estimate of $9.50 billion.Best Buy also updated its FY 2020 guidance to $5.45-5.65 EPS.

A number of equities analysts recently commented on the stock. Evercore ISI assumed coverage on shares of Best Buy in a research note on Wednesday, March 20th. They issued an in-line rating and a $75.00 price objective for the company. Wedbush reaffirmed a neutral rating and issued a $65.00 price objective on shares of Best Buy in a research note on Friday, February 22nd. Bank of America raised shares of Best Buy from an underperform rating to a neutral rating and set a $50.00 price objective for the company in a research note on Wednesday, February 27th. Jefferies Financial Group raised shares of Best Buy from a hold rating to a buy rating and lifted their target price for the company from $72.00 to $88.00 in a research note on Wednesday, April 24th. Finally, Citigroup lifted their target price on shares of Best Buy from $72.00 to $77.00 and gave the company a neutral rating in a research note on Friday, March 1st. Eleven equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The stock has an average rating of Hold and a consensus target price of $78.24.

Best Buy stock opened at $65.82 on Friday. The firm has a market cap of $18.74 billion, a PE ratio of 12.37, a price-to-earnings-growth ratio of 1.41 and a beta of 0.94. The company has a current ratio of 1.18, a quick ratio of 0.46 and a debt-to-equity ratio of 0.40. Best Buy has a 1-year low of $47.72 and a 1-year high of $84.37.

Best Buy (NYSE:BBY) last released its quarterly earnings results on Thursday, May 23rd. The technology retailer reported $1.02 earnings per share for the quarter, beating analysts’ consensus estimates of $0.88 by $0.14. The business had revenue of $9.14 billion for the quarter, compared to the consensus estimate of $9.14 billion. Best Buy had a net margin of 3.41% and a return on equity of 46.33%. Best Buy’s revenue for the quarter was up .4% on a year-over-year basis. During the same quarter last year, the firm earned $0.82 EPS. On average, research analysts expect that Best Buy will post 5.66 EPS for the current year.

Best Buy declared that its board has authorized a share repurchase plan on Wednesday, February 27th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the technology retailer to reacquire up to 18.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

In other news, major shareholder Richard M. Schulze sold 492,000 shares of the firm’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $68.50, for a total transaction of $33,702,000.00. Following the transaction, the insider now owns 1,732,500 shares in the company, valued at approximately $118,676,250. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Brian A. Tilzer sold 2,739 shares of the firm’s stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $72.88, for a total transaction of $199,618.32. The disclosure for this sale can be found here. Insiders have sold a total of 1,443,734 shares of company stock worth $100,145,966 in the last 90 days. 0.95% of the stock is owned by insiders.

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Best Buy Company Profile

Best Buy Co, Inc operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide Computing and Mobile Phones, such as computing and peripherals, e-readers, networking products, tablets, and wearables, as well as mobile phones comprising related mobile network carrier commissions; consumer electronics, including digital imaging, health and fitness, home theater, portable audio, and smart home products; and entertainment products consisting of drones, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products.

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Earnings History and Estimates for Best Buy (NYSE:BBY)

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