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

Best Buy (NYSE:BBY) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 6.300-6.600 for the period, compared to the consensus estimate of 6.490. The company issued revenue guidance of $41.2 billion-$42.1 billion, compared to the consensus revenue estimate of $41.8 billion.

Best Buy Price Performance

Shares of BBY stock traded up $10.30 during trading on Thursday, hitting $74.84. The company had a trading volume of 14,361,121 shares, compared to its average volume of 4,500,754. The company has a quick ratio of 0.43, a current ratio of 1.11 and a debt-to-equity ratio of 0.39. The stock’s 50-day moving average is $61.74 and its two-hundred day moving average is $66.83. The stock has a market capitalization of $15.77 billion, a price-to-earnings ratio of 14.85, a price-to-earnings-growth ratio of 1.56 and a beta of 1.22. Best Buy has a 52 week low of $55.10 and a 52 week high of $84.99.

Best Buy (NYSE:BBY) last posted its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.22 by $0.06. The company had revenue of $8.94 billion for the quarter, compared to analysts’ expectations of $8.82 billion. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. Best Buy’s revenue for the quarter was up 1.9% compared to the same quarter last year. During the same period in the prior year, the business earned $1.15 earnings per share. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, analysts predict that Best Buy will post 6.5 EPS for the current fiscal year.

Best Buy Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 24th were paid a $0.96 dividend. This is an increase from Best Buy’s previous quarterly dividend of $0.95. This represents a $3.84 annualized dividend and a yield of 5.1%. The ex-dividend date of this dividend was Tuesday, March 24th. Best Buy’s payout ratio is currently 76.19%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on BBY. UBS Group reaffirmed a “buy” rating and issued a $85.00 target price on shares of Best Buy in a research note on Tuesday. Citigroup cut their target price on Best Buy from $69.00 to $60.00 and set a “neutral” rating for the company in a research note on Tuesday, May 12th. BNP Paribas Exane upped their target price on Best Buy from $68.00 to $74.00 and gave the stock a “neutral” rating in a research note on Wednesday, March 4th. Piper Sandler reaffirmed a “neutral” rating and issued a $77.00 target price on shares of Best Buy in a research note on Thursday. Finally, Telsey Advisory Group cut their target price on Best Buy from $95.00 to $80.00 and set an “outperform” rating for the company in a research note on Wednesday, March 4th. Eight equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $70.70.

Insider Buying and Selling

In other Best Buy news, CAO Mathew Watson sold 3,298 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $211,137.96. Following the completion of the transaction, the chief accounting officer owned 23,192 shares in the company, valued at approximately $1,484,751.84. This represents a 12.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Kathleen Scarlett sold 8,049 shares of the stock in a transaction on 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 transaction, the executive vice president owned 102,669 shares of the company’s stock, valued at approximately $6,572,869.38. This trade represents a 7.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 77,247 shares of company stock valued at $4,945,353 over the last three months. Insiders own 0.47% 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 adjusted EPS of $1.28, ahead of the $1.22 consensus, and revenue of $8.94 billion versus expectations of $8.82 billion, signaling better-than-expected demand. Best Buy Reports First Quarter Results
• Positive Sentiment: Comparable sales rose 2.0%, helped by strength in gaming, computers and cellphones, showing that core sales trends are improving after a period of weakness. Best Buy beats on top and bottom lines as retailer aims to reinvigorate sales
• Positive Sentiment: Best Buy reaffirmed its full-year outlook and signaled better-than-expected second-quarter sales, which reassured investors that the recovery may continue. Best Buy Affirms Full-Year Outlook Following First-Quarter Beat; Shares Surge
• Positive Sentiment: Jefferies raised its price target on BBY to $89 from $83 and maintained a buy rating, reflecting improved confidence in the stock’s upside after the earnings beat. Best Buy price target raised by Jefferies
• Neutral Sentiment: The company also noted a CEO transition later this year, which adds some uncertainty, though it did not offset the strong quarter. Best Buy Surges on Earnings. Its 5% Yield Looks Even Better

Hedge Funds Weigh In On Best Buy

Institutional investors have recently added to or reduced their stakes in the company. Palisade Asset Management LLC bought a new position in Best Buy in the third quarter worth $25,000. Atlas Capital Advisors Inc. bought a new position in shares of Best Buy during the fourth quarter valued at $32,000. CYBER HORNET ETFs LLC bought a new position in shares of Best Buy during the second quarter valued at $33,000. MUFG Securities EMEA plc bought a new position in shares of Best Buy during the second quarter valued at $38,000. Finally, DV Equities LLC bought a new position in shares of Best Buy during the fourth quarter valued at $38,000. Institutional investors own 80.96% of the company’s stock.

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.