Best Buy Q4 EPS beats estimates on international market boost; hikes dividend

Overview

• Consumer electronics retailer's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company increased quarterly dividend by 1% to $0.96 per share

Outlook

• Best Buy expects FY27 revenue between $41.2 bln and $42.1 bln

• Company anticipates FY27 adjusted diluted EPS of $6.30 to $6.60

• Best Buy forecasts FY27 comparable sales change of (1.0%) to 1.0%; sees Q1 comparable sales growth of about 1%

Result Drivers

• DOMESTIC SALES DECLINE - Domestic revenue decreased 1.1% primarily due to declines in home theater and appliances, partially offset by growth in computing and mobile phones

• INTERNATIONAL REVENUE GROWTH - International revenue increased 0.5% due to favorable foreign exchange rates, despite a comparable sales decline

• MARKETPLACE AND ADS EXPANSION - Growth in Best Buy Ads and Marketplace contributed to financial performance, offsetting lower product margins

Company press release: ID:nBw1Rx2C8a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 19 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the computer & electronics retailers peer group is "buy."

• Wall Street's median 12-month price target for Best Buy Co Inc is $76.50, about 24.2% above its March 2 closing price of $61.59

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.