Best Buy (NYSE:BBY) Issues FY 2027 Earnings Guidance

Key Points

• Best Buy raised its FY 2027 outlook, guiding for EPS of 6.30 to 6.60 and revenue of $41.2 billion to $42.1 billion. Both ranges came in near, but slightly around, Wall Street expectations.
• The company’s latest quarter beat estimates, with adjusted EPS of $1.28 on revenue of $8.94 billion versus analyst expectations of $1.22 and $8.82 billion, respectively. Comparable sales also rose 2.0%, helped by strength in gaming, computers, and cellphones.
• Best Buy shares surged on the update, jumping about 16% to around $74.84 as investors responded positively to the earnings beat and reaffirmed outlook. Despite the rally, several analysts have recently trimmed ratings or price targets, leaving the stock with a consensus “Hold” view.

Best Buy (NYSE:BBY - Get Free Report) updated its FY 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 6.300-6.600 for the period, compared to the consensus earnings per share estimate of 6.490. The company issued revenue guidance of $41.2 billion-$42.1 billion, compared to the consensus revenue estimate of $41.8 billion.

Analyst Ratings Changes

Several research firms have recently weighed in on BBY. The Goldman Sachs Group cut shares of Best Buy from a "buy" rating to a "sell" rating and set a $59.00 target price for the company. in a report on Monday, April 13th. Morgan Stanley cut their price target on shares of Best Buy from $76.00 to $72.00 and set an "equal weight" rating for the company in a research note on Wednesday, March 4th. Truist Financial cut their price target on shares of Best Buy from $73.00 to $66.00 and set a "hold" rating for the company in a research note on Tuesday, March 3rd. Weiss Ratings cut shares of Best Buy from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, May 7th. Finally, UBS Group reissued a "buy" rating and issued a $85.00 price objective on shares of Best Buy in a research report on Tuesday. Eight investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $70.70.

Best Buy Trading Up 16.0%

Shares of NYSE:BBY traded up $10.30 during mid-day trading on Thursday, hitting $74.84. The company had a trading volume of 14,361,121 shares, compared to its average volume of 4,500,754. The firm has a fifty day moving average price of $61.74 and a 200 day moving average price of $66.83. The company has a market capitalization of $15.77 billion, a PE ratio of 14.85, a price-to-earnings-growth ratio of 1.56 and a beta of 1.22. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.11 and a quick ratio of 0.43. Best Buy has a one year low of $55.10 and a one year high of $84.99.

Best Buy (NYSE:BBY - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, beating analysts' consensus estimates of $1.22 by $0.06. The business had revenue of $8.94 billion during the quarter, compared to analyst estimates of $8.82 billion. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. Best Buy's quarterly revenue was up 1.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.15 EPS. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, research analysts forecast that Best Buy will post 6.5 EPS for the current year.

Best Buy Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 24th were issued a dividend of $0.96 per share. The ex-dividend date of this dividend was Tuesday, March 24th. This represents a $3.84 dividend on an annualized basis and a yield of 5.1%. This is a positive change from Best Buy's previous quarterly dividend of $0.95. Best Buy's payout ratio is presently 76.19%.

Insider Activity

In related news, EVP Kathleen Scarlett sold 8,049 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 $515,296.98. Following the transaction, the executive vice president directly owned 102,669 shares of the company's stock, valued at approximately $6,572,869.38. The trade was a 7.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Matthew M. Bilunas sold 11,356 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 transaction of $727,011.12. Following the completion of the transaction, the chief financial officer directly owned 76,884 shares in the company, valued at $4,922,113.68. This trade represents a 12.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 77,247 shares of company stock worth $4,945,353. Company insiders own 0.47% of the company's stock.

Best Buy News Summary

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy reported adjusted EPS of $1.28, ahead of the $1.22 consensus, and revenue of $8.94 billion versus expectations of $8.82 billion, signaling better-than-expected demand. Best Buy Reports First Quarter Results
• Positive Sentiment: Comparable sales rose 2.0%, helped by strength in gaming, computers and cellphones, showing that core sales trends are improving after a period of weakness. Best Buy beats on top and bottom lines as retailer aims to reinvigorate sales
• Positive Sentiment: Best Buy reaffirmed its full-year outlook and signaled better-than-expected second-quarter sales, which reassured investors that the recovery may continue. Best Buy Affirms Full-Year Outlook Following First-Quarter Beat; Shares Surge
• Positive Sentiment: Jefferies raised its price target on BBY to $89 from $83 and maintained a buy rating, reflecting improved confidence in the stock’s upside after the earnings beat. Best Buy price target raised by Jefferies
• Neutral Sentiment: The company also noted a CEO transition later this year, which adds some uncertainty, though it did not offset the strong quarter. Best Buy Surges on Earnings. Its 5% Yield Looks Even Better

Institutional Investors Weigh In On Best Buy

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

Best Buy Company Profile

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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