Best Buy Co. Inc. Reports Fiscal Second-Quarter Results
Shares of Best Buy Co. Inc. (BBY) experienced a 0.5% boost in premarket trading on Tuesday following the release of their fiscal second-quarter results. While the consumer electronics retailer presented a mixed full-year outlook, their earnings exceeded expectations.
Impressive Earnings and Decreased Net Income
In comparison to the year-ago period, Best Buy's net income for the quarter ending July 29 decreased from $306 million to $274 million. Earnings per share also saw a decline from $1.35 to $1.25. However, when excluding nonrecurring items, adjusted earnings per share reached $1.22, surpassing the FactSet consensus of $1.06.
Revenue and Same-Store Sales
Best Buy's revenue fell by 7.2% to $9.58 billion, slightly exceeding the FactSet consensus of $9.52 billion. Although same-store sales experienced a decline of 6.2%, it outperformed expectations of a 7.0% decrease.
Revised Guidance for Fiscal 2024
For the fiscal year 2024, Best Buy revised their guidance ranges, lowering revenue expectations to a range of $43.8 billion to $44.5 billion from the previous range of $43.8 billion to $45.2 billion. Additionally, they adjusted their forecast for same-store sales declines to a range of 4.5% to 6.0% from 3.0% to 6.0%. However, they increased their adjusted EPS guidance to $6.00 to $6.40 from $5.70 to $6.50.
A Positive Outlook
Despite the adjustments in guidance, Best Buy anticipates that this year will mark the "low point" in tech demand after two years of declines.
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