Best Buy (NYSE:BBY) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Best Buy (NYSE:BBY) issued its quarterly earnings results on Thursday. The technology retailer reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.22 by $0.06, FiscalAI reports. The company had revenue of $8.94 billion for the quarter, compared to analysts’ expectations of $8.82 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The firm’s revenue for the quarter was up 1.9% on a year-over-year basis. During the same period last year, the firm earned $1.15 EPS. Best Buy updated its FY 2027 guidance to 6.300-6.600 EPS.

Here are the key takeaways from Best Buy’s conference call:

• Best Buy delivered better-than-expected Q1 results, with comparable sales up 2%, revenue of $8.9 billion, adjusted operating margin of 4.1%, and adjusted EPS up 11% to $1.28. Management said the company is maintaining its full-year guidance.
• Best Buy Ads and Marketplace continued to outperform, both contributing positively to gross profit; domestic Marketplace GMV reached about $250 million in Q1. Management said these initiatives remain important new profit streams and expects U.S. Marketplace GMV of at least $1.2 billion for the year.
• Core categories showed strength, including gaming, computing, and mobile phones, while newer categories such as AI glasses, 3D printers, collectibles, health rings, and PC gaming handhelds doubled year over year. TV trends also improved materially, setting up the launch of RGB televisions in June.
• Best Buy said May sales were running at high-single-digit growth across most categories, but it still expects Q2 comparable sales of about 1% because of tough comparisons, including last year’s Switch launch and later-quarter computing lapping. The company also said it has not seen evidence of customers materially pulling forward purchases ahead of memory-related price increases.
• Management outlined a broader strategic reset under incoming CEO Jason Bonfig, emphasizing Best Buy’s evolution into a retail, media, advertising, and technology company. The company also plans to expand with medium- and small-format stores, reconfigure larger stores with concepts like Meta-branded spaces, and enhance its membership program with rewards points for paid members.

Best Buy Price Performance

BBY opened at $78.16 on Friday. The stock has a market cap of $16.47 billion, a price-to-earnings ratio of 14.47, a PEG ratio of 1.85 and a beta of 1.22. Best Buy has a 1 year low of $55.10 and a 1 year high of $84.99. The company has a current ratio of 1.12, a quick ratio of 0.43 and a debt-to-equity ratio of 0.38. The stock has a fifty day moving average price of $62.29 and a 200 day moving average price of $66.88.

Best Buy Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 18th will be given a dividend of $0.96 per share. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $3.84 dividend on an annualized basis and a yield of 4.9%. Best Buy’s dividend payout ratio (DPR) is presently 71.11%.

Insider Buying and Selling

In other Best Buy news, EVP Kathleen Scarlett sold 8,049 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $515,296.98. Following the completion of the sale, the executive vice president owned 102,669 shares of the company’s stock, valued at $6,572,869.38. The trade was a 7.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Corie S. Barry sold 42,869 shares of the business’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $2,744,473.38. Following the completion of the sale, the chief executive officer directly owned 523,138 shares of the company’s stock, valued at $33,491,294.76. This represents a 7.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 77,247 shares of company stock valued at $4,945,353. 0.47% of the stock is owned by corporate insiders.

Institutional Trading of Best Buy

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC increased its stake in shares of Best Buy by 30.9% in the fourth quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer’s stock worth $613,001,000 after purchasing an additional 2,160,968 shares during the period. Charles Schwab Investment Management Inc. increased its stake in shares of Best Buy by 2.2% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,452,642 shares of the technology retailer’s stock worth $498,805,000 after purchasing an additional 160,713 shares during the period. Invesco Ltd. increased its stake in shares of Best Buy by 6.1% in the fourth quarter. Invesco Ltd. now owns 4,732,080 shares of the technology retailer’s stock worth $316,718,000 after purchasing an additional 271,988 shares during the period. Morgan Stanley increased its stake in shares of Best Buy by 19.1% in the fourth quarter. Morgan Stanley now owns 3,778,294 shares of the technology retailer’s stock worth $252,881,000 after purchasing an additional 605,911 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Best Buy by 26.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,133,646 shares of the technology retailer’s stock worth $209,735,000 after purchasing an additional 664,522 shares during the period. Institutional investors and hedge funds own 80.96% of the company’s stock.

Key Stories Impacting Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy reported Q1 adjusted EPS of $1.28, above estimates of $1.22, and revenue of $8.94 billion, also ahead of forecasts, with comparable sales rising 2.0%. Best Buy Q1 Earnings Beat Estimates, Comparable Sales Rise 2%
• Positive Sentiment: The company reaffirmed its full-year guidance and highlighted improving margins and stronger demand in gaming, computing, and cellphones, suggesting the turnaround is gaining traction. Best Buy Reports First Quarter Results
• Positive Sentiment: Several analyst firms raised price targets after the earnings release, including Jefferies, Loop Capital, Guggenheim, Morgan Stanley, Citigroup, and others, indicating improving sentiment around the stock. Analyst rating updates
• Positive Sentiment: Retail-industry news also pointed to selective consumer spending still favoring value-focused names like Best Buy, adding to the rally. Retail Rally Sends Kohl’s, Best Buy, Dollar Tree Up As Much As 18%
• Neutral Sentiment: DA Davidson reaffirmed its buy rating but set a $78 price target, which is roughly in line with the current share price and does not materially change the valuation debate. DA Davidson rating reaffirmation
• Neutral Sentiment: Best Buy also announced a quarterly dividend of $0.96 per share, reinforcing its income appeal for investors. Dividend announcement

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on BBY. Wells Fargo & Company lifted their target price on Best Buy from $60.00 to $65.00 and gave the stock an “equal weight” rating in a report on Thursday. Guggenheim restated a “buy” rating and issued a $90.00 target price on shares of Best Buy in a report on Friday. Piper Sandler restated a “neutral” rating and issued a $77.00 target price on shares of Best Buy in a report on Thursday. Wedbush lifted their target price on Best Buy from $70.00 to $75.00 and gave the stock a “neutral” rating in a report on Friday. Finally, JPMorgan Chase & Co. raised their target price on Best Buy from $76.00 to $84.00 and gave the stock a “neutral” rating in a research report on Friday. Six investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Best Buy has a consensus rating of “Hold” and an average price target of $78.60.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.