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

Key Points

• Best Buy's quarterly earnings exceeded estimates, reporting $1.28 EPS versus the expected $1.22, with revenue also surpassing projections at $9.44 billion.
• The company declared a quarterly dividend of $0.95 per share, yielding 5.0%, and will distribute this on October 9th, 2023.
• Recent analyst ratings for Best Buy have led to varied price targets, with a consensus target of $84.50 and a mix of "buy," "hold," and "neutral" recommendations.

Best Buy (NYSE:BBY - Get Free Report) issued its earnings results on Thursday. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.22 by $0.06, Zacks reports. The company had revenue of $9.44 billion during the quarter, compared to analyst estimates of $9.23 billion. Best Buy had a return on equity of 46.40% and a net margin of 2.13%.During the same quarter last year, the business posted $1.34 EPS. Best Buy updated its FY 2026 guidance to 6.150-6.300 EPS.

Best Buy Stock Performance

Shares of NYSE BBY opened at $75.45 on Thursday. The company has a market capitalization of $15.95 billion, a PE ratio of 18.45, a price-to-earnings-growth ratio of 1.95 and a beta of 1.21. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.32 and a current ratio of 1.02. The company's fifty day moving average price is $69.60 and its 200 day moving average price is $71.67. Best Buy has a 1 year low of $54.99 and a 1 year high of $103.71.

Best Buy Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Thursday, September 18th will be issued a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis and a yield of 5.0%. Best Buy's dividend payout ratio (DPR) is presently 92.91%.

Analysts Set New Price Targets

Several brokerages have recently issued reports on BBY. UBS Group reduced their price objective on Best Buy from $95.00 to $90.00 and set a "buy" rating for the company in a research note on Friday, May 30th. Truist Financial increased their price target on shares of Best Buy from $64.00 to $69.00 and gave the stock a "hold" rating in a report on Friday, May 30th. Wedbush decreased their price objective on shares of Best Buy from $75.00 to $70.00 and set a "neutral" rating for the company in a research note on Friday, May 30th. Piper Sandler reiterated a "neutral" rating and issued a $75.00 price objective (down previously from $82.00) on shares of Best Buy in a research note on Monday, July 14th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Best Buy from $95.00 to $88.00 and set an "overweight" rating for the company in a research report on Friday, August 22nd. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $84.50.

Insider Buying and Selling at Best Buy

In other news, Chairman Richard M. Schulze sold 729,201 shares of the stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $72.95, for a total transaction of $53,195,212.95. Following the sale, the chairman directly owned 196,100 shares of the company's stock, valued at $14,305,495. This represents a 78.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.47% of the company's stock.

Hedge Funds Weigh In On Best Buy

Large investors have recently bought and sold shares of the business. CYBER HORNET ETFs LLC purchased a new position in Best Buy during the second quarter worth approximately $33,000. MUFG Securities EMEA plc purchased a new stake in shares of Best Buy in the second quarter valued at approximately $38,000. Rakuten Securities Inc. raised its stake in shares of Best Buy by 178.3% during the 2nd quarter. Rakuten Securities Inc. now owns 960 shares of the technology retailer's stock worth $64,000 after buying an additional 615 shares during the period. Geneos Wealth Management Inc. lifted its position in shares of Best Buy by 30.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,466 shares of the technology retailer's stock valued at $98,000 after buying an additional 338 shares in the last quarter. Finally, Hudson Bay Capital Management LP purchased a new position in shares of Best Buy during the 2nd quarter valued at approximately $244,000. Institutional investors and hedge funds own 80.96% of the company's stock.

About Best Buy

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.

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