- Best Buy’s adjusted earnings per share (EPS) for 3Q was $1.26, falling short of the estimated $1.29, and also slightly lower than last year’s $1.29.
- Enterprise comparable sales decreased by 2.9%, surpassing the prior year’s 6.9% decline but missing the estimated -0.92%.
- International comparable sales dropped by 3.7%, compared to a 1.9% decline last year, missing the estimated -0.57%.
- US comparable sales decreased by 2.8%, improving from last year’s 7.3% decline but below the estimated -0.74%.
- US entertainment comparable sales plummeted by 18.8%, a stark contrast to a 20.6% increase last year, far below the estimated -5.4%.
- US appliance sales fell by 14.7%, slightly better than last year’s 15.1% decline but missing the estimated -7.5%.
- US computing and mobile phone sales rose by 3.8%, a reversal from an 8.3% drop last year, slightly surpassing the estimated 3.4% growth.
- US consumer electronics sales decreased by 5.8%, improving from last year’s 9.5% drop but below the estimated -2.72%.
- US online comparable sales saw a minor decrease of 1%, a notable improvement from last year’s 9.3% decline.
- Overall revenue was $9.45 billion, down 3.2% year-over-year, missing the expected $9.63 billion.
- US revenue reached $8.70 billion, a 3.3% decrease from last year, missing the $8.88 billion estimate.
- International revenue fell to $748 million, down 1.6% year-over-year, just shy of the estimated $756.9 million.
- Gross margin improved to 23.5% from last year’s 22.9%, slightly higher than the 23.1% estimate.
- Looking ahead to Q4 FY25, Best Buy forecasts comparable sales to remain flat to decline by up to 3%, with a non-GAAP operating income rate between 4.6% and 4.8%.
- In terms of stock ratings, there are 11 buys, 16 holds, and 2 sells for Best Buy.
Best Buy Co Inc on Smartkarma
Analyst coverage of Best Buy Co Inc on Smartkarma reveals insightful research by Baptista Research. In the report titled “Best Buy Co.: How Is The Management Adapting to Changing Consumer Behaviors? – Major Drivers,” the analysis delves into the company’s second quarter fiscal 2025 earnings, showcasing a mix of financial outcomes. Best Buy Co. exceeded expectations with a comparable sales decline of 2.3% and a non-GAAP operating income rate of 4.1%, attributed to lower SG&A expenses and growth in non-GAAP operating income from membership and services offerings.
Another report by Baptista Research, “Best Buy Co.: How Are Strategically Using AI In The Business! – Major Drivers,” focused on the first quarter fiscal 2025 earnings of Best Buy Co Inc. The analysis highlighted the company’s better-than-expected Q1 profitability and strategic use of AI to drive improvements in operational metrics. Analyst sentiment leans bullish, emphasizing the company’s strong execution and preparations for future growth in the evolving consumer landscape.
A look at Best Buy Co Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Best Buy Co Inc, a renowned retailer of consumer electronics and home office products, shows a mixed outlook based on the Smartkarma Smart Scores. While it scores well in Dividend and Momentum, suggesting a strong dividend payout and positive market momentum, it lags in Value and Resilience factors. The Growth score falls in the middle range, indicating moderate growth prospects for the company. Best Buy Co Inc, known for its wide range of products and services through retail stores and online platforms, faces some challenges in terms of value and resilience according to the Smart Scores.
Looking ahead, investors evaluating Best Buy Co Inc’s long-term prospects may find the company’s high Dividend and Momentum scores appealing, indicating potential for steady income and positive market performance. However, the lower scores in Value and Resilience suggest potential risks and concerns regarding the company’s valuation and ability to weather market volatility. With a moderate Growth score, Best Buy Co Inc may continue to expand its offerings and maintain its market position amidst ongoing competition in the consumer electronics and retail sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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