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Best Buy (BBY) Q1 2024 Earnings

by SuperiorInvest

The TVs are available for sale at Best Buy in New York.

Andrew Kelly | Reuters

Best buy beat Wall Street’s quarterly earnings expectations on Thursday, but its sales missed estimates and reiterated expectations for weaker spending on consumer electronics this year.

The retailer confirmed the outlook it shared in March. It expects full-year revenue of between $43.8 billion and $45.2 billion, down from last fiscal year and down 3% to 6% on a comparable basis.

Shares rose more than 4% in premarket trading.

CEO Corie Barry said Best Buy has seen no change in the mix of customers and the percentage of premium products they buy.

Still, she added, “in this environment, customers are clearly feeling cautious and making trade-off decisions as they continue to face high inflation and low consumer confidence due to a number of factors.”

Here’s how the company fared in the three-month period ended April 29 compared to Wall Street expectations, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.15 adjusted versus $1.11 expected
  • Revenue: $9.47 billion vs. $9.52 billion expected

Best Buy’s first-quarter net income fell to $244 million, or $1.11 per share, from $341 million, or $1.49 per share, a year earlier.

Net sales fell from $10.65 billion in the year-ago period and missed Wall Street expectations.

Comparable sales fell 10.1% in the quarter, in line with the decline expected by investors, according to StreetAccount.

Shares of Best Buy closed at $69.15 on Wednesday, giving the company a market value of $15.12 billion. Its shares have fallen 14% so far this year, trailing the S&P 500’s 7% gain and retail-focused XRT’s 2% decline over the same period.

This is the latest news. Please check for updates.

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