Latest news with #BBY
Yahoo
2 days ago
- Business
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Best Buy price target lowered to $70 from $75 at Wedbush
Wedbush lowered the firm's price target on Best Buy (BBY) to $70 from $75 and keeps a Neutral rating on the shares. The firm notes the company reported mixed Q1 results that missed buy-side expectations looking for upside to consensus estimates on the top line, while delivering upside vs. consensus on the bottom line that was partially driven by a favorable tax settlement. As expected, the company revised its full year outlook lower after incorporating tariff impacts, but to a lesser degree than what was implied coming out of Q4 earnings with the company and its supplier base partially mitigating tariff headwinds in the interim months, Wedbush adds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on BBY: Disclaimer & DisclosureReport an Issue Best Buy price target lowered to $90 from $95 at UBS Best Buy price target lowered to $80 from $90 at Loop Capital Best Buy Co: Hold Rating Amid Growth Potential and Tariff Challenges Best Buy price target lowered to $82 from $92 at Piper Sandler Best Buy price target lowered to $63 from $75 at BofA Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
BBY Q1 Earnings Call: Revenue Misses Expectations, Management Highlights Tariff Headwinds and Marketplace Launch
Electronics retailer Best Buy (NYSE:BBY) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $8.77 billion. Its non-GAAP EPS of $1.15 per share was 5% above analysts' consensus estimates. Is now the time to buy BBY? Find out in our full research report (it's free). Revenue: $8.77 billion (flat year on year) Adjusted EPS: $1.15 vs analyst estimates of $1.09 (5% beat) Adjusted Operating Income: $333 million vs analyst estimates of $303.1 million (3.8% margin, 9.9% beat) Management lowered its full-year Adjusted EPS guidance to $6.23 at the midpoint, a 2.7% decrease Operating Margin: 2.5%, down from 3.5% in the same quarter last year Locations: 1,107.8 at quarter end, down from 1,117 in the same quarter last year Same-Store Sales were flat year on year (-6.1% in the same quarter last year) Market Capitalization: $15.14 billion Best Buy's first quarter results were shaped by mixed category performance and continued shifts in consumer behavior. CEO Corie Barry described how growth in computing, mobile phones, and tablets was offset by ongoing softness in home theater, appliances, and drones. Online sales remained a bright spot, with nearly 32% of domestic revenue coming from digital channels and delivery times continuing to improve. Management acknowledged that customers are highly value-focused and remain attracted to predictable sales moments, with Barry noting, 'customers continued to be deal-focused and attracted to more predictable sales moments.' Operational execution, inventory management, and digital investments played key roles in stabilizing results, despite a cautious consumer environment. Looking ahead, Best Buy's outlook is shaped by ongoing tariff uncertainty and changing consumer technology needs. Management lowered full-year adjusted EPS guidance and cited continued inflation and tariff dynamics as primary headwinds. Barry emphasized that 'there is still uncertainty related to tariff levels, timing, and countries involved in addition to the potential actions of others in the industry.' The company is focused on mitigating tariff impacts through vendor partnerships, manufacturing flexibility, and assortment adjustments. Management expects growth in computing and gaming categories, driven by technology upgrades and product launches, while also investing in marketplace initiatives and retail media to diversify profit streams. These strategies are intended to position Best Buy for long-term resilience amid market challenges. Management attributed first quarter performance to category mix shifts, digital engagement improvements, and evolving supply chain strategies in response to the current tariff environment. Growth in computing and tablets: Strong customer demand for computing and tablet products drove comparable sales growth in these categories, supported by upgrade cycles and interest in AI-enabled devices. Barry noted positive momentum tied to end-of-life support for Windows 10 and new product innovations. Omnichannel and digital expansion: Online sales grew year-over-year for the second consecutive quarter, with faster delivery times and a higher mix of sales through digital channels. Management highlighted improvements in search and app experiences as key contributors to digital engagement. Tariff mitigation strategies: The company has reduced its reliance on China as a sourcing region, now representing about 30–35% of product costs, compared to 55% earlier in the year. Efforts include leveraging vendor manufacturing flexibility, negotiating costs, diversifying sourcing, and adjusting assortment to lessen the impact of tariffs on both costs and prices. Marketplace and retail media initiatives: Best Buy is preparing for a mid-year launch of its third-party marketplace, having already exceeded its annual seller onboarding target. The Best Buy Ads business expanded digital ad inventory and partnerships, including new offerings with Meta, aiming to drive incremental profitability through both traffic and new advertisers. Operational efficiencies and cost control: Investments in supply chain technology, AI-driven customer care, and procurement optimization have resulted in cost savings and improved customer satisfaction. CFO Matt Bilunas pointed to a favorable indirect tax settlement and disciplined expense management as drivers of better-than-expected profitability. Best Buy's near-term outlook is influenced by tariff pressures, consumer demand uncertainty, and the scaling of new digital profit streams. Tariff and supply chain risk: Management highlighted that ongoing trade policy negotiations and varying tariff levels could impact both product costs and consumer pricing throughout the year. The company is actively working with vendors to mitigate these impacts, but acknowledged that cost increases may flow through to customers in select categories. Marketplace and advertising growth: The upcoming U.S. marketplace launch and expansion of the retail media business are expected to benefit gross profit rates, especially in the second half of the year. Management believes marketplace contributions will help offset category margin pressures, while new ad partnerships are set to broaden revenue sources. Category innovation and upgrade cycles: Best Buy expects continued growth in computing and mobile phones, supported by replacement cycles (such as end-of-life for Windows 10 and Mac upgrades), new gaming launches, and increased interest in AI-enabled and wearable products. Management sees these trends as key drivers for comp sales improvement, particularly as the year progresses. In the coming quarters, the StockStory team will be watching (1) how effectively Best Buy navigates further tariff changes and adjusts sourcing strategies, (2) the impact of the U.S. marketplace launch and expanded retail media offerings on gross profitability, and (3) category trends in computing, gaming, and wearables as upgrade cycles and product launches unfold. Progress in cost containment and operational efficiency initiatives will also be important to monitor. Best Buy currently trades at a forward P/E ratio of 10.7×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
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Earnings show ‘uncertainty' is only sure thing for investors
(Bloomberg) — Earnings season is finally over, and for investors one thing is certain: Corporate executives and Wall Street analysts are deeply concerned about the 'uncertainty' sparked by President Donald Trump's combative trade plans. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move NY Wins Order Against US Funding Freeze in Congestion Fight Why Arid Cities Should Stick Together 'As we look to the rest of the year, there is still uncertainty related to tariff levels, timing and countries involved in addition to the potential actions of others in the industry, as well as the potential reaction of American consumers,' Corie Barry, chief executive officer of Best Buy Co. (BBY), said during the company's earnings call Thursday. She's hardly alone. Deckers Outdoor Corp.'s (DECK) chief financial officer said last week that the company can't give full-year guidance due to 'macroeconomic uncertainty related to global trade policy.' And AT&T Inc. (T) is leaving flexibility in its balance sheet so it can respond to 'a competitive environment or any uncertain things that occur in the macro environment,' CEO John Stankey said. Since the beginning of April, the words 'uncertain,' 'uncertainty' and 'uncertainties' have been used about 3,100 times during companies' earnings calls and other events, according to an analysis of transcripts compiled by Bloomberg. That's the most in any quarter based on records going back more than two decades, topping even the height of the global financial crisis in 2008 and the beginning of the Covid-19 pandemic in 2020. The level of uncertainty is rising as the courts challenge Trump's sweeping global tariffs. On Wednesday, a three-judge panel for the US Court of International Trade declared that the Trump administration had wrongly invoked a 1977 law in imposing levies on dozens of countries and that the move was therefore illegal. Then on Thursday, a federal judge in Washington ruled that a number of Trump's tariffs on China and other countries were unlawful. Finally, on Thursday afternoon a federal appeals court temporarily paused the Court of International Trade's ruling on Trump's tariffs so it can weigh a longer lasting stay sought by the government. For its part, the Trump administration has vowed to appeal the decision to the Supreme Court if necessary. All of this lack of clarity on trade and the impact on the economy is weighing on stock-market investors, even as the S&P 500 Index (^SPX) has rebounded from its April lows and is now less than 4% from the all-time peak it hit in February. 'It's really hard to feel confident that we're going to surge higher to record highs with this overhang,' said Mark Hackett, chief market strategist at Nationwide. Meanwhile, a measure of chief executives' confidence has plunged to the lowest level since 2022. More than 80% of executives said they expected a recession within the next year-and-a-half, according to a May survey by the Conference Board in collaboration with the Business Council. On Goldman Sachs Group Inc.s (GS) April 14 earnings call, CEO David Solomon said a lack of clarity had constrained clients' ability to make 'important' decisions. 'This uncertainty around the path forward and fears over the potentially escalating effects of the trade war have created material risks to the US and global economy,' he said. 'We are hopeful that feedback from companies large and small, institutional investors and ultimately consumers will support an approach that will lead to greater economic certainty and long-term growth.' Six weeks later, US trade policy is still in flux. Countries are racing to strike deals before Trump's tariff pauses end, while the president keeps rattling markets with threats on social media. Meanwhile, the US economy shrank in the first quarter, but other economic data has largely held firm. Companies have by and large kept capital spending plans intact despite fears of a pullback, which is encouraging to investors. However, for corporate executives, the risk of the unknown remains the biggest fear. 'In the longer term, the secondary effects of tariffs, like impacts to global GDP growth and energy demand, are much more complex and remain a source of uncertainty,' Exxon Mobil Corp. (XOM) CEO Darren Woods said Wednesday. 'We're staying focused on the things we can control.' (Adds CEO confidence survey in ninth paragraph.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce How Coach Handbags Became a Gen Z Status Symbol Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy
Yahoo
3 days ago
- Business
- Yahoo
Best Buy Co Inc (BBY) Q1 2026 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $8.8 billion, a decrease of 0.9% year-over-year. Adjusted Operating Income Rate: 3.8%, flat year-over-year. Adjusted Earnings Per Share (EPS): $1.15, a decrease of 4% year-over-year. Domestic Comparable Sales: Decline of 0.7%. International Revenue: $640 million, a decrease of 0.6% year-over-year. Gross Profit Rate: 23.4%, an improvement of 10 basis points year-over-year. Online Sales: Nearly 32% of total domestic sales. Shareholder Returns: $302 million returned through dividends and share repurchases. Full-Year Revenue Guidance: $41.1 billion to $41.9 billion. Full-Year Comparable Sales Guidance: Down 1% to up 1%. Capital Expenditures Guidance: Approximately $700 million. Warning! GuruFocus has detected 2 Warning Signs with BBY. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Best Buy Co Inc (NYSE:BBY) delivered better-than-expected profitability in Q1 with an adjusted operating income rate of 3.8% on revenue of $8.8 billion. The company saw a 6% comparable sales growth in the combined computing and tablet categories, indicating strong demand in these segments. Online sales grew year over year for the second consecutive quarter, making up nearly 32% of total domestic sales, with a strong on-time ship-to-home delivery performance. Best Buy Co Inc (NYSE:BBY) reported material year-over-year improvement in its domestic relationship Net Promoter Score, reflecting enhanced customer satisfaction. The company is on track to launch its improved search experience across digital platforms, which will include AI-powered prompts and natural conversational filtering to enhance customer experience. Best Buy Co Inc (NYSE:BBY) reported a domestic comparable sales decline of 0.7%, with declines in home theater, appliances, and drones offsetting growth in other categories. The company is facing challenges due to the current tariff environment, with tariffs impacting various product categories differently, potentially affecting costs and pricing strategies. International revenue decreased by 0.6% versus last year, with a negative foreign currency impact of approximately 450 basis points. Adjusted diluted earnings per share decreased by 4% to $1.15, partly due to lower investment income from a reduced average cash balance and lower short-term interest rates. Best Buy Co Inc (NYSE:BBY) incurred $109 million in restructuring charges, primarily associated with a restructuring initiative within its Best Buy Health business. Q: Can you explain the significant change in your China sourcing strategy compared to three months ago? A: Corie Barry, CEO, explained that China sourcing has decreased to 30%-35% from 55% due to vendors leveraging manufacturing flexibility and increasing country diversification. This shift is a result of vendors creating new manufacturing locations and adjusting supply chains to mitigate tariff impacts. Best Buy only directly imports 2%-3% of its assortment, and the increased product costs are lower than the overall tariff rates due to these mitigation efforts. Q: Did you experience any pull forward in demand for consumer electronics, and how is your market share holding up? A: Matthew Bilunas, CFO, noted that while there might have been some pull forward due to Easter shifts, it's hard to quantify. Corie Barry added that while Q1 was quieter with fewer launches, they expect to gain market share in computing and gaming throughout the year. They are less concerned about quarterly fluctuations and more focused on strategic pricing and promotional decisions. Q: How are tariffs affecting consumer behavior, and are you seeing any demand destruction from higher prices? A: Corie Barry stated that while consumers are making trade-offs due to higher prices across various areas, they remain resilient and value-focused. There is no significant change in behavior due to tariffs, as consumers are still willing to spend on high-price products when necessary or when there is compelling technology innovation. Q: How do the 3P growth and advertising initiatives impact your financials, and where do they show up? A: Matthew Bilunas explained that incremental advertising revenue from the Best Buy Ads initiative can appear in both revenue and gross margin, depending on the nature of the contract. The 3P marketplace revenue is recognized as commission revenue in gross margin. Both initiatives are expected to positively impact gross profit rates, particularly in the back half of the year. Q: With the updated comp guidance, what are the drivers for growth in the back half of the year? A: Matthew Bilunas highlighted several factors, including the end of Windows 10 support, the need for Mac upgrades, improvements in mobile phone sales, and gaming launches like the Switch 2. Additionally, store experience enhancements and new product highlights are expected to drive growth. The guidance reflects a range of outcomes, considering potential tariff impacts and consumer behavior. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
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Compared to Estimates, Best Buy (BBY) Q1 Earnings: A Look at Key Metrics
For the quarter ended April 2025, Best Buy (BBY) reported revenue of $8.77 billion, down 0.9% over the same period last year. EPS came in at $1.15, compared to $1.20 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $8.77 billion, representing a surprise of +0.01%. The company delivered an EPS surprise of +5.50%, with the consensus EPS estimate being $1.09. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Best Buy performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales - Enterprise - YoY change: -0.7% versus the nine-analyst average estimate of -0.6%. Comparable store sales - Domestic - YoY change: -0.7% versus the eight-analyst average estimate of -0.7%. Comparable store sales - International - YoY change: -0.7% versus -0.4% estimated by seven analysts on average. Number of stores - International - Total: 157 compared to the 160 average estimate based on five analysts. Number of stores - Domestic - Pacific Sales Stores: 20 versus the four-analyst average estimate of 20. Number of stores - International - Canada Best Buy Stores: 128 versus 129 estimated by four analysts on average. Number of stores - International - Canada Best Buy Mobile Stand-Alone Stores: 29 compared to the 31 average estimate based on four analysts. Number of stores - Domestic - U.S. Best Buy Stores: 886 versus the four-analyst average estimate of 888. Number of stores - Domestic - Total: 951 compared to the 955 average estimate based on four analysts. Number of stores - Total: 1,108 compared to the 1,114 average estimate based on four analysts. Geographic Revenue- International: $640 million versus the six-analyst average estimate of $639.25 million. The reported number represents a year-over-year change of -0.6%. Geographic Revenue- Domestic: $8.13 billion compared to the $8.11 billion average estimate based on six analysts. The reported number represents a change of -0.9% year over year. View all Key Company Metrics for Best Buy here>>>Shares of Best Buy have returned +7.2% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
