Best Buy (NYSE:BBY) Announces Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Best Buy beat quarterly expectations, reporting EPS of $1.28 versus the $1.22 consensus estimate, while revenue came in at $8.94 billion, ahead of the $8.82 billion forecast.
• The stock was trading up about 2.1% after the results, opening at $64.54, as investors reacted positively to the earnings beat.
• Best Buy also raised its quarterly dividend to $0.96 per share from $0.95, bringing the annualized payout to $3.84 and a yield of 5.9%.

Best Buy (NYSE:BBY - Get Free Report) posted its quarterly earnings results on Thursday. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.22 by $0.06, FiscalAI reports. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The business had revenue of $8.94 billion during the quarter, compared to the consensus estimate of $8.82 billion.

Best Buy Trading Up 2.1%

Shares of Best Buy stock opened at $64.54 on Thursday. Best Buy has a 52-week low of $55.10 and a 52-week high of $84.99. The stock's 50-day simple moving average is $61.74 and its 200 day simple moving average is $66.83. The stock has a market capitalization of $13.60 billion, a P/E ratio of 12.81, a P/E/G ratio of 1.56 and a beta of 1.22. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.43 and a current ratio of 1.11.

Best Buy Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, April 14th. Investors of record on Tuesday, March 24th were paid a $0.96 dividend. The ex-dividend date was Tuesday, March 24th. This represents a $3.84 dividend on an annualized basis and a yield of 5.9%. This is an increase from Best Buy's previous quarterly dividend of $0.95. Best Buy's dividend payout ratio (DPR) is presently 76.19%.

Insiders Place Their Bets

In related news, CAO Mathew Watson sold 3,298 shares of the business's stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $211,137.96. Following the sale, the chief accounting officer directly owned 23,192 shares in the company, valued at approximately $1,484,751.84. The trade was a 12.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Corie S. Barry sold 42,869 shares of the business's stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $64.02, for a total value of $2,744,473.38. Following the completion of the sale, the chief executive officer owned 523,138 shares in the company, valued at $33,491,294.76. This represents a 7.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 77,247 shares of company stock worth $4,945,353 in the last ninety days. 0.47% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Best Buy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. raised its stake in Best Buy by 6.1% in the 4th quarter. Invesco Ltd. now owns 4,732,080 shares of the technology retailer's stock valued at $316,718,000 after acquiring an additional 271,988 shares during the period. Corient Private Wealth LLC raised its stake in Best Buy by 686.7% in the 4th quarter. Corient Private Wealth LLC now owns 139,358 shares of the technology retailer's stock valued at $9,327,000 after acquiring an additional 121,643 shares during the period. Alberta Investment Management Corp raised its stake in Best Buy by 124.6% in the 4th quarter. Alberta Investment Management Corp now owns 65,800 shares of the technology retailer's stock valued at $4,404,000 after acquiring an additional 36,500 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in Best Buy by 40.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 116,449 shares of the technology retailer's stock valued at $7,794,000 after buying an additional 33,766 shares in the last quarter. Finally, Vident Advisory LLC grew its holdings in Best Buy by 30.0% during the 4th quarter. Vident Advisory LLC now owns 43,098 shares of the technology retailer's stock valued at $2,885,000 after buying an additional 9,944 shares in the last quarter. 80.96% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. DA Davidson set a $78.00 price target on shares of Best Buy in a research report on Thursday, March 5th. UBS Group reissued a "buy" rating and issued a $85.00 price target on shares of Best Buy in a research report on Tuesday. HSBC reduced their price target on shares of Best Buy from $96.00 to $85.00 in a research report on Thursday, February 26th. Wedbush raised their price objective on Best Buy from $7.00 to $8.00 and gave the company an "outperform" rating in a research note on Tuesday, April 28th. Finally, JPMorgan Chase & Co. cut Best Buy from an "overweight" rating to a "neutral" rating and dropped their price objective for the company from $99.00 to $76.00 in a research note on Monday, February 2nd. Nine investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $70.25.

About Best Buy

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.

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