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

Best Buy (NYSE:BBY) updated its FY 2027 earnings guidance on Thursday. The company provided EPS guidance of 6.700-6.900 for the period, compared to the consensus EPS 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 Up 2.5%

Shares of NYSE:BBY opened at $87.40 on Thursday. Best Buy has a 12-month low of $55.10 and a 12-month high of $91.26. The stock has a market capitalization of $18.42 billion, a price-to-earnings ratio of 16.19, a PEG ratio of 2.44 and a beta of 1.29. The stock has a fifty day simple moving average of $82.84 and a two-hundred day simple moving average of $71.17. The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.38.

Best Buy (NYSE:BBY) last released its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping the consensus estimate of $1.39 by $0.08. The company had revenue of $9.78 billion during the quarter, compared to the consensus estimate of $9.59 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. On average, research analysts anticipate that Best Buy will post 6.6 earnings per share for the current fiscal year.

Analysts Set New Price Targets

BBY has been the topic of several recent analyst reports. Guggenheim reissued a “buy” rating and set a $90.00 target price on shares of Best Buy in a research note on Friday, May 29th. Morgan Stanley boosted their price objective on shares of Best Buy from $72.00 to $80.00 and gave the company an “equal weight” rating in a research report on Friday, May 29th. Piper Sandler boosted their price objective on Best Buy from $77.00 to $85.00 and gave the company a “neutral” rating in a report on Thursday, August 20th. UBS Group reiterated a “neutral” rating and issued a $86.00 price target (up from $85.00) on shares of Best Buy in a report on Friday, May 29th. Finally, Truist Financial raised Best Buy from a “hold” rating to a “buy” rating and increased their price target for the stock from $81.00 to $95.00 in a research report on Tuesday, August 11th. Six research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Best Buy presently has an average rating of “Hold” and a consensus target price of $83.10.

Insider Activity

In related news, Chairman Richard M. Schulze sold 224,705 shares of Best Buy stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the transaction, the chairman owned 10,430,936 shares in the company, valued at approximately $814,656,101.60. This trade represents a 2.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Mathew Watson sold 1,784 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $73.80, for a total value of $131,659.20. Following the completion of the transaction, the chief accounting officer owned 21,630 shares of the company’s stock, valued at $1,596,294. The trade was a 7.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,002,134 shares of company stock worth $77,283,527. Corporate insiders own 0.50% of the company’s stock.

Key Headlines Impacting Best Buy

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

• Positive Sentiment: Best Buy reported second-quarter adjusted earnings of $1.47 per share, exceeding the $1.39 analyst consensus, while revenue of $9.78 billion topped expectations of $9.59 billion. Best Buy quarterly earnings report
• Positive Sentiment: Quarterly enterprise comparable sales rose 4.1%, with domestic comparable sales up 4.5%, a significant improvement from the prior year and evidence of strengthening retail performance. Best Buy Reports Second Quarter Results
• Positive Sentiment: Management raised full-year adjusted earnings guidance to $6.70-$6.90 per share, from $6.30-$6.60 previously, signaling increased confidence in profitability. Best Buy Raises Outlook as Sales Grow
• Positive Sentiment: The company also raised its full-year sales forecast, supported by steady demand for technology upgrades and replacement products. Computing was identified as a key area of strength. Best Buy raises annual sales forecast
• Neutral Sentiment: Best Buy is preparing for incoming CEO Jason Bonfig. The leadership transition adds a future execution consideration, but the current results indicate that the business turnaround is gaining traction. Best Buy tops quarterly estimates and raises outlook
• Negative Sentiment: International revenue declined year over year, and management continues to operate against a backdrop of cautious consumer spending, which could limit discretionary electronics demand.

Hedge Funds Weigh In On Best Buy

Several hedge funds have recently added to or reduced their stakes in BBY. Palisade Asset Management LLC purchased a new position in shares of Best Buy during the third quarter worth about $25,000. Atlas Capital Advisors Inc. acquired a new stake in Best Buy in the 4th quarter valued at about $32,000. CYBER HORNET ETFs LLC acquired a new position in shares of Best Buy during the 2nd quarter worth approximately $33,000. MUFG Securities EMEA plc purchased a new stake in shares of Best Buy in the second quarter valued at $38,000. Finally, DV Equities LLC acquired a new stake in shares of Best Buy during the 4th quarter worth about $38,000. 80.96% of the stock is currently owned by hedge funds and other institutional investors.

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.