Best Buy (NYSE:BBY) Releases FY 2027 Earnings Guidance

Best Buy (NYSE:BBY) updated its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 6.700-6.900 for the period, compared to the consensus estimate of 6.590. The company issued revenue guidance of $42.3 billion-$42.8 billion, compared to the consensus revenue estimate of $42.1 billion.

Best Buy Stock Down 4.2%

Best Buy stock opened at $83.77 on Friday. The firm has a market cap of $17.66 billion, a PE ratio of 15.51, a P/E/G ratio of 2.50 and a beta of 1.29. Best Buy has a twelve month low of $55.10 and a twelve month high of $91.26. The firm’s 50 day moving average price is $83.01 and its two-hundred day moving average price is $71.26. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.40 and a current ratio of 1.12.

Best Buy (NYSE:BBY) last posted its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.08. Best Buy had a net margin of 2.73% and a return on equity of 48.70%. The business had revenue of $9.78 billion during the quarter, compared to the consensus estimate of $9.59 billion. During the same period in the prior year, the firm earned $1.28 EPS. Best Buy’s quarterly revenue was up 3.6% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. On average, research analysts predict that Best Buy will post 6.6 EPS for the current fiscal year.

Best Buy Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th will be given a dividend of $0.96 per share. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date of this dividend is Thursday, September 17th. Best Buy’s dividend payout ratio (DPR) is currently 71.11%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on BBY. Citigroup lifted their target price on Best Buy from $79.00 to $88.00 and gave the company a “neutral” rating in a research report on Thursday, August 13th. Loop Capital lowered Best Buy from a “buy” rating to a “hold” rating and set a $82.00 target price on the stock. in a report on Monday, July 13th. DA Davidson reaffirmed a “buy” rating and set a $90.00 price target on shares of Best Buy in a report on Monday, June 22nd. Wall Street Zen downgraded shares of Best Buy from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. Finally, Barclays restated a “buy” rating and set a $85.00 target price on shares of Best Buy in a research report on Friday. Seven analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Best Buy has an average rating of “Hold” and a consensus target price of $83.75.

Insider Buying and Selling at Best Buy

In related news, Chairman Richard M. Schulze sold 224,705 shares of the company’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the completion of the transaction, the chairman directly owned 10,430,936 shares in the company, valued at $814,656,101.60. This represents a 2.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders have sold 500,000 shares of company stock valued at $39,065,226. Company insiders own 0.50% 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 adjusted earnings of $1.47 per share and revenue of $9.78 billion, exceeding analyst expectations of $1.39 and $9.59 billion, respectively. Revenue increased 3.6% year over year, while comparable sales rose 4.1%, supported by stronger computing demand. Best Buy Reports Second Quarter Results
• Positive Sentiment: Management raised fiscal 2027 guidance, now forecasting adjusted EPS of $6.70-$6.90, up from $6.30-$6.60, and revenue of $42.3-$42.8 billion, above the $42.1 billion consensus estimate. Best Buy raises annual sales forecast on steady electronics demand
• Positive Sentiment: Growth initiatives include expanded digital and omnichannel sales, smaller-format stores and the rollout of the “Ask Blue” conversational AI assistant. Demand for computing products, AI glasses and collectibles also contributed to the upbeat outlook. Best Buy Expands Omnichannel Footprint With OpenAI Integration and Smaller-Format Stores
• Neutral Sentiment: Best Buy declared a quarterly dividend of $0.96 per share, payable October 8 to shareholders of record September 17. The annualized payout is approximately $3.84 per share, implying a yield near 4.6% at the referenced share price.
• Negative Sentiment: The stock fell even after the earnings beat and guidance increase, suggesting the results may have been largely anticipated. Investors may also remain concerned about subdued consumer spending, thin net margins and whether computing-led growth can persist.

Institutional Trading of Best Buy

Hedge funds and other institutional investors have recently made changes to their positions in the company. Palisade Asset Management LLC bought a new stake in shares of Best Buy in the 3rd quarter valued at about $25,000. Atlas Capital Advisors Inc. bought a new position in Best Buy during the fourth quarter worth $32,000. CYBER HORNET ETFs LLC acquired a new position in Best Buy in the second quarter valued at $33,000. MUFG Securities EMEA plc acquired a new position in Best Buy in the second quarter valued at $38,000. Finally, DV Equities LLC acquired a new position in Best Buy in the fourth quarter valued at $38,000. 80.96% of the stock is currently owned by institutional investors.

About Best Buy

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.