Best Buy Co. Inc. (NYSE: BBY) announced its fourth-quarter earnings on Thursday before the market opened. With a market capitalization of $24.258 billion and an average trading volume of 2.9 million shares, the company reported earnings for this quarter reporting the profit at $626 million.
The Best Buy (BBY) stock which previously closed at $100.84, traded at $105.80, up 4.96 points (+4.92%) in the pre-market trade after the earnings was released.
- Revenue: $16.36 billion
- EPS: $2.73 per share
- Q4 comparable ales Decreased 2.3% Compared to 12.6% Growth in Q4 FY21
- Q4 GAAP Diluted EPS of $2.62
- Q4 Non-GAAP Diluted EPS of $2.73
- FY22 GAAP Operating Income Rate of 5.9%
- FY22 Non-GAAP Operating Income Rate of 6.0%
- Increased Quarterly Dividend 26% to $0.88 per Share
- Expects FY23 Non-GAAP Diluted EPS of $8.85 to $9.15
- Expects FY25 Revenue of $53.5 billion to $56.5 billion
- Expects FY25 Non-GAAP Operating Income Rate of 6.3% to 6.8%
Best Buy CEO’s Statement
“Our teams showed remarkable execution and dedication to serving our customers throughout the important gift giving season. In Q4, we drove improvement in year-over-year customer satisfaction metrics across almost all areas, particularly for in-store, online and chat experiences. And even with online sales at almost 40% of our Domestic revenue, we reached our fastest holiday delivery times ever, shipping 2 products to customer homes more than 25% faster than last year and two years ago. I am truly grateful for, and continue to be impressed by, our associates’ dedication, resourcefulness and flat-out determination.”
“Q4 sales of $16.4 billion were impacted by more constrained inventory than expected, including some high demand holiday items, and the temporary reduction in store hours in January due to Omicron-induced staffing challenges. We are deliberately investing in our future and furthering our competitive differentiation which, as expected, impacted our Q4 profitability. The biggest areas of investment were our new membership program, technology and Best Buy Health, all core to our future growth potential.” said Corie Barry, Best Buy CEO.
Analysts had estimated the earnings of BBY to stand at $2.73 per share, while the revenue was expected to be $16.59 billion. The analysts’ total revenue estimate for the current year was $51.97 billion, while the earnings are predicted at $9.99 per share.
Best Buy’s (BBY) Earnings History
Best Buy Co. Inc. (BBY) has beaten the estimates constantly. The company reported a revenue of $11.91 billion in Q3 while the EPS stood at $2.08 against the expected EPS of $1.91, giving a surprise of 8.90%. The net income reported was $499 million.
In the second quarter, the company beat the EPS by a massive margin of 57.90%. In the fourth quarter of 2020, the earnings beat the estimates by 0.90%.
For the next quarter, the analysts expect the earnings to stand at $1.62, while the revenue would be $10.37 billion.