Best Buy's Blue Today: Fool by Numbers
By David Meier
December 12, 2006
Recommended (3)
On Dec. 12, consumer-electronics behemoth and Stock Advisor selection Best Buy (NYSE: BBY) released its third-quarter earnings for the period ended Nov. 25.
- Sales were up 15.5% for the quarter, with same-store sales rising 4.8%. That's the good news.
- Margins were down across the board, causing the company to miss its expectations. That's the bad news.
- In our new community-intelligence service, Motley Fool CAPS, 570 out of 621 investors think Best Buy will outperform the S&P 500. What do you think? Sign up today, and let your voice be heard.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007
|
Q3 2006
|
Change
|
|
Sales
|
$8,473.0
|
$7,335.0
|
15.5%
|
|
Net Profit
|
$150.0
|
$138.0
|
8.7%
|
|
EPS
|
$0.31
|
$0.28
|
10.7%
|
|
Diluted Shares
|
495.8
|
507.2
|
(2.2%)
|
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007
|
Q3 2006
|
Change*
|
|
Gross Margin
|
23.5%
|
24.4%
|
(0.9)
|
|
Operating Margin
|
2.3%
|
2.6%
|
(0.3)
|
|
Net Margin
|
1.8%
|
1.9%
|
(0.1)
|
*Expressed in percentage points.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets
|
Q3 2007
|
Q3 2006
|
Change
|
|
Cash + ST Invest.
|
$2,715.0
|
$3,097.0
|
(12.3%)
|
|
Accounts Rec.
|
$1,112.0
|
$883.0
|
25.9%
|
|
Inventory
|
$6,084.0
|
$5,314.0
|
14.5%
|
|
Liabilities
|
Q3 2007
|
Q3 2006
|
Change
|
|
Accounts Payable
|
$6,332.0
|
$5,325.0
|
18.9%
|
|
Long-Term Debt*
|
$650.0
|
$571.0
|
13.8%
|
*Includes current portion of long-term debt.
Learn the ways of the balance sheet.
Cash Flow Highlights
A press release without a cash flow statement is like a stereo without speakers.
Find out why Fools always follow the money.
Related Companies:
-
Circuit City (NYSE: CC)
-
Tweeter Home Entertainment (Nasdaq: TWTR)
-
Conn
's (Nasdaq: CONN)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check
Fool.com
for more of our in-depth discussion of what the numbers mean.
Does your portfolio have the blues? Get it out of the red, and make yourself some green, with help from
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At the time of publication, David Meier did not own shares in any of the companies mentioned. Fool rules for disclosure are here.
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