Is Best Buy a Buy?: Fool by Numbers
By Motley Fool Contributors
June 20, 2007
On June 19, Best Buy (NYSE: BBY) released first-quarter earnings for the period ended June 2.
- The net sales increased by 13.9% to $7.9 billion. Same-store sales moved ahead 3.0%, and online revenue shot up 20%.
- Gross profit margin dipped by 150 bps to 23.9%. According to the company, this decline is due to lower gross profit rate from the Chinese business acquired last June and lower margins from notebook computers and gaming hardware.
- The company repurchased approximately 8.7 million shares of its common stock at an average price of $47.21 per share for a total of $412 million.
- The company lowered its fiscal 2008 earning per diluted share guidance to a range of $2.95 to $3.15.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$7,927
|
$6,959
|
13.9%
|
|
Net Profit
|
$192
|
$234
|
(17.9%)
|
|
EPS
|
$0.39
|
$0.47
|
(17%)
|
|
Diluted Shares
|
491.5
|
500.8
|
(1.9%)
|
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008
|
Q1 2007
|
Change*
|
|
Gross Margin
|
23.9%
|
25.4%
|
(1.5)
|
|
Operating Margin
|
3.4%
|
4.8%
|
(1.5)
|
|
Net Margin
|
2.4%
|
3.4%
|
(0.9)
|
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2008
|
Q1 2007
|
Change
|
|
Cash + ST Invest.
|
$2,802
|
$2,326
|
20.5%
|
|
Accounts Rec.
|
$476
|
$409
|
16.4%
|
|
Inventory
|
$4,298
|
$3,737
|
15%
|
| |
|
|
|
|
Liabilities
|
Q1 2008
|
Q1 2007
|
Change
|
|
Accounts Payable
|
$3,957
|
$3,055
|
29.5%
|
|
Total Debt
|
$665
|
$598
|
11.2%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
You wouldn't buy a receiver without having speakers to use, and you can't look at the complete financial performance without a cash flow statement.
Free cash flow is a Fool's best friend.
Related Foolishness:
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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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
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