Best Buy (NYSE:BBY) Issues Earnings Results

Best Buy (NYSE:BBY) released its quarterly earnings data 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. The firm had revenue of $8.94 billion for the quarter, compared to analysts’ expectations of $8.82 billion. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The company’s revenue for the quarter was up 1.9% compared to the same quarter last year. During the same quarter last year, the business posted $1.15 earnings per share. Best Buy updated its FY 2027 guidance to 6.300-6.600 EPS.

Here are the key takeaways from Best Buy’s conference call:

• Best Buy delivered better-than-expected Q1 results, with comparable sales up 2%, revenue of $8.9 billion, adjusted operating margin of 4.1%, and adjusted EPS up 11% to $1.28. Management said the company is maintaining its full-year guidance.
• Best Buy Ads and Marketplace continued to outperform, both contributing positively to gross profit; domestic Marketplace GMV reached about $250 million in Q1. Management said these initiatives remain important new profit streams and expects U.S. Marketplace GMV of at least $1.2 billion for the year.
• Core categories showed strength, including gaming, computing, and mobile phones, while newer categories such as AI glasses, 3D printers, collectibles, health rings, and PC gaming handhelds doubled year over year. TV trends also improved materially, setting up the launch of RGB televisions in June.
• Best Buy said May sales were running at high-single-digit growth across most categories, but it still expects Q2 comparable sales of about 1% because of tough comparisons, including last year’s Switch launch and later-quarter computing lapping. The company also said it has not seen evidence of customers materially pulling forward purchases ahead of memory-related price increases.
• Management outlined a broader strategic reset under incoming CEO Jason Bonfig, emphasizing Best Buy’s evolution into a retail, media, advertising, and technology company. The company also plans to expand with medium- and small-format stores, reconfigure larger stores with concepts like Meta-branded spaces, and enhance its membership program with rewards points for paid members.

Best Buy Price Performance

BBY stock opened at $74.84 on Friday. Best Buy has a 52 week low of $55.10 and a 52 week high of $84.99. The company has a quick ratio of 0.43, a current ratio of 1.11 and a debt-to-equity ratio of 0.39. The company has a fifty day simple moving average of $61.99 and a two-hundred day simple moving average of $66.80. The firm has a market capitalization of $15.77 billion, a P/E ratio of 14.85, a price-to-earnings-growth ratio of 1.59 and a beta of 1.22.

Best Buy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be given a dividend of $0.96 per share. The ex-dividend date is Thursday, June 18th. This represents a $3.84 annualized dividend and a yield of 5.1%. Best Buy’s dividend payout ratio (DPR) is 76.19%.

Insider Buying and Selling at Best Buy

In other Best Buy news, CFO Matthew M. Bilunas sold 11,356 shares of the business’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $727,011.12. Following the transaction, the chief financial officer owned 76,884 shares in the company, valued at $4,922,113.68. The trade was a 12.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Corie S. Barry sold 42,869 shares of the business’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $2,744,473.38. Following the transaction, the chief executive officer owned 523,138 shares in the company, valued at $33,491,294.76. This trade represents a 7.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 77,247 shares of company stock valued at $4,945,353. Insiders own 0.47% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. UMB Bank n.a. lifted its holdings in shares of Best Buy by 6.2% in the fourth quarter. UMB Bank n.a. now owns 3,158 shares of the technology retailer’s stock valued at $211,000 after buying an additional 185 shares during the period. Parallel Advisors LLC lifted its holdings in shares of Best Buy by 8.2% in the third quarter. Parallel Advisors LLC now owns 2,677 shares of the technology retailer’s stock valued at $202,000 after buying an additional 202 shares during the period. Lido Advisors LLC lifted its holdings in shares of Best Buy by 2.7% in the third quarter. Lido Advisors LLC now owns 11,918 shares of the technology retailer’s stock valued at $912,000 after buying an additional 317 shares during the period. Palisade Asset Management LLC acquired a new stake in shares of Best Buy in the third quarter valued at $25,000. Finally, Geneos Wealth Management Inc. lifted its holdings in shares of Best Buy by 30.0% in the second 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 during the period. Institutional investors own 80.96% of the company’s stock.

Key Stories Impacting Best Buy

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

• Positive Sentiment: Best Buy topped Q1 estimates with adjusted EPS of $1.28 versus $1.22 expected, while revenue reached $8.94 billion versus $8.82 billion forecast. Best Buy Reports First Quarter Results
• Positive Sentiment: Comparable sales rose 2.0%, showing that customer demand improved after recent pressure in the electronics retail market. Best Buy Q1 Earnings Beat Estimates, Comparable Sales Rise 2%
• Positive Sentiment: Best Buy reaffirmed its full-year outlook and issued second-quarter sales guidance that appears to be holding up better than feared, which can support investor confidence. Best Buy stock pops on first quarter earnings beat
• Positive Sentiment: Jefferies raised its price target on BBY to $89 from $83 and kept a buy rating, reinforcing the bullish post-earnings move. Best Buy price target raised by Jefferies
• Neutral Sentiment: Best Buy announced a quarterly dividend of $0.96 per share, which supports the stock’s income appeal but is not a major near-term catalyst. Best Buy dividend announcement
• Neutral Sentiment: Unusual call-option activity suggests traders are positioning for more upside after the earnings beat. Stock Traders Buy High Volume of Best Buy Call Options

Analysts Set New Price Targets

Several research firms have recently issued reports on BBY. Jefferies Financial Group lifted their price objective on shares of Best Buy from $83.00 to $89.00 and gave the company a “buy” rating in a research report on Thursday. Telsey Advisory Group set a $90.00 price objective on shares of Best Buy in a research report on Friday. Weiss Ratings cut shares of Best Buy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, May 7th. Morgan Stanley lifted their price objective on shares of Best Buy from $72.00 to $80.00 and gave the company an “equal weight” rating in a research report on Friday. Finally, Evercore set a $65.00 price objective on shares of Best Buy in a research report on Tuesday, April 14th. Eight equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Best Buy presently has an average rating of “Hold” and a consensus target price of $71.65.

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.