Best Buy (NYSE:BBY) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Best Buy exceeded quarterly expectations, reporting adjusted EPS of $1.47 versus the $1.39 consensus estimate and revenue of $9.78 billion compared with expectations of $9.59 billion. Comparable sales increased 4.1% overall and 4.5% domestically.
• Management raised full-year adjusted EPS guidance to $6.70–$6.90 from $6.30–$6.60 and also increased its annual sales forecast, citing steady technology-upgrade demand and strength in computing.
• Despite improving performance, Best Buy faces cautious consumer spending, declining international revenue, and an upcoming CEO transition. Analysts remain broadly neutral, with a consensus “Hold” rating and $83.10 price target.

Best Buy (NYSE:BBY - Get Free Report) announced its earnings results on Thursday. The technology retailer reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.39 by $0.08, FiscalAI reports. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The company had revenue of $9.78 billion for the quarter, compared to analysts' expectations of $9.59 billion. Best Buy updated its FY 2027 guidance to 6.700-6.900 EPS.

Best Buy Stock Performance

Shares of BBY opened at $87.40 on Thursday. The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.38. The stock has a 50-day moving average price of $82.84 and a 200-day moving average price of $71.17. The company has a market cap of $18.42 billion, a PE ratio of 16.19, a price-to-earnings-growth ratio of 2.44 and a beta of 1.29. Best Buy has a 12-month low of $55.10 and a 12-month high of $91.26.

Analyst Upgrades and Downgrades

BBY has been the subject of several analyst reports. Evercore increased their target price on shares of Best Buy from $65.00 to $85.00 in a report on Friday, May 29th. Guggenheim reaffirmed a "buy" rating and issued a $90.00 price objective on shares of Best Buy in a research report on Friday, May 29th. Telsey Advisory Group lifted their target price on shares of Best Buy from $90.00 to $95.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 4th. The Goldman Sachs Group upped their target price on Best Buy from $59.00 to $62.00 and gave the company a "sell" rating in a report on Friday, May 29th. Finally, Wells Fargo & Company increased their price target on Best Buy from $65.00 to $85.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 11th. Six equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Best Buy has an average rating of "Hold" and a consensus price target of $83.10.

Insider Transactions at Best Buy

In related news, Chairman Richard M. Schulze sold 224,705 shares of the firm's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the transaction, the chairman directly owned 10,430,936 shares of the company's stock, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Mathew Watson sold 1,784 shares of Best Buy stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $73.80, for a total value of $131,659.20. Following the completion of the transaction, the chief accounting officer owned 21,630 shares in the company, valued at approximately $1,596,294. This represents a 7.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,002,134 shares of company stock worth $77,283,527 in the last 90 days. Company insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Best Buy

Hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC boosted its stake in Best Buy by 30.9% during the fourth quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer's stock worth $613,001,000 after acquiring an additional 2,160,968 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in shares of Best Buy by 2.2% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,452,642 shares of the technology retailer's stock worth $498,805,000 after buying an additional 160,713 shares in the last quarter. Invesco Ltd. grew its holdings in shares of 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 buying an additional 271,988 shares during the last quarter. Morgan Stanley grew its holdings in shares of Best Buy by 19.1% during the fourth quarter. Morgan Stanley now owns 3,778,294 shares of the technology retailer's stock valued at $252,881,000 after buying an additional 605,911 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Best Buy by 26.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,133,646 shares of the technology retailer's stock valued at $209,735,000 after acquiring an additional 664,522 shares in the last quarter. 80.96% of the stock is currently owned by institutional investors.

Best Buy News Roundup

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

• Positive Sentiment: Best Buy reported second-quarter adjusted earnings of $1.47 per share, exceeding the $1.39 analyst consensus, while revenue of $9.78 billion topped expectations of $9.59 billion. Best Buy quarterly earnings report
• Positive Sentiment: Quarterly enterprise comparable sales rose 4.1%, with domestic comparable sales up 4.5%, a significant improvement from the prior year and evidence of strengthening retail performance. Best Buy Reports Second Quarter Results
• Positive Sentiment: Management raised full-year adjusted earnings guidance to $6.70-$6.90 per share, from $6.30-$6.60 previously, signaling increased confidence in profitability. Best Buy Raises Outlook as Sales Grow
• Positive Sentiment: The company also raised its full-year sales forecast, supported by steady demand for technology upgrades and replacement products. Computing was identified as a key area of strength. Best Buy raises annual sales forecast
• Neutral Sentiment: Best Buy is preparing for incoming CEO Jason Bonfig. The leadership transition adds a future execution consideration, but the current results indicate that the business turnaround is gaining traction. Best Buy tops quarterly estimates and raises outlook
• Negative Sentiment: International revenue declined year over year, and management continues to operate against a backdrop of cautious consumer spending, which could limit discretionary electronics demand.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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