The 10-second takeaway
For the quarter ended May 4 (Q1), Best Buy whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Best Buy logged revenue of $9.38 billion. The 15 analysts polled by S&P Capital IQ foresaw revenue of $10.68 billion on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $11.61 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. Non-GAAP EPS of $0.32 for Q1 were 56% lower than the prior-year quarter's $0.72 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS were -$0.24 for Q1 versus $0.46 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.1%, 190 basis points worse than the prior-year quarter. Operating margin was 1.9%, 150 basis points worse than the prior-year quarter. Net margin was -0.9%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.32 billion. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $47.95 billion. The average EPS estimate is $2.19.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 2,648 members out of 3,453 rating the stock outperform, and 805 members rating it underperform. Among 885 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 700 give Best Buy a green thumbs-up, and 185 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Best Buy is hold, with an average price target of $24.05.
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