Best Buy Co. Inc (NYSE: BBY)
Best Buy Co. Inc reported better-than-anticipated fiscal fourth quarter earnings and sales Wednesday. Strong demand for appliances, coupled with increasing gains in wearable devices, and gaming consoles resulted in better results across the board.
The consumer electronics retailer also announced a $3 billion share buyback, hiked its dividend and provided an upbeat profit guidance. Shares of the Richfield-based company climbed $6.18, or 10.25% to $66.49 in premarket trade.
BBY Earning & Outlook
Best Buy reported fourth quarter net income of $735 million, or $2.69 per share, an increase of 69% from $364 million, or $1.23 per share, in the same period last year. Excluding one-time items, earnings were $2.72, while analysts were expecting adjusted earnings of $2.57 per share, based on figures compiled by Refinitiv.
Company wide revenue jumped 9.77% to $14.8 billion from $15.4 billion in the fourth quarter of 2017. On average, analysts polled by Refinitiv had called for fourth quarter revenue of $14.70 billion. Comparable store sales in the U.S. rose 3% surpassing 2% Refinitiv consensus.
Looking ahead, Best Buy views fiscal 2020 adjusted earnings to be in the region of $5.45 to $5.65 per share on revenue of $42.9 billion to $43.9 billion. Analysts model fiscal 2020 adjusted earnings of $5.49 per share on revenue of $43.4 billion.
Best Buy CEO Comments
“We are very proud of the financial results we have just delivered. For the fourth quarter, we reported a 3.0% increase in our comparable sales, on top of 9.0% comparable sales growth last year. For the full year, our comparable sales grew 4.8% and our EPS increased more than 20%,” said Hubert Joly, Best Buy chairman and CEO.
“In addition to these great financial results, we made significant progress implementing our Best Buy 2020 strategy to enrich lives through technology and further develop our competitive differentiation. We launched our Total Tech Support program, expanded our In-Home Advisor program and acquired GreatCall. I so appreciate the hard work of our associates, as well as our partners, in driving these terrific results.”
Best Buy Co., Inc Profile
Best Buy Co., Inc. provides consumer electronics, home office products, entertainment products, appliances and related services. It operates through two business segments: Domestic and International.
The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., operating under various brand names, including but not limited to, Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster and Pacific Sales. The International segment is comprised of all operations outside the U.S. and its territories, which includes Canada, Europe, China, Mexico and Turkey.
It also markets its products under the brand names: Best Buy, Audiovisions, Best Buy Mobile, The Carphone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales and The Phone House. The company was founded by Richard M. Schulze in 1966 and is headquartered in Richfield, MN. – CNN Money