In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from BBY and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last two quarters. In the last quarter it reported $0.72 EPS, beating analyst estimates of $0.59.
The consensus EPS estimate is $0.32 based on 24 analysts' estimates, down from $0.47 a year ago. Revenue estimates are $10.68B. The median target price by analysts for the stock is $21.50.
Average recommendation: Hold
Analyst Upgrades and Downgrades
- On June 14, 2012, Citigroup upgraded the company from Sell to Neutral.
- On May 20, 2012, BB&T Capital Mkts downgraded the company from Buy to Hold.
- On April 16, 2012, UBS reiterated its Neutral rating for the company.
- On April 2, 2012, McAdams Wright Ragen downgraded the company from Buy to Sell.
- On March 28, 2012, UBS reiterated its Neutral rating for the company.
- On August 6, 2012, Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor, LLP (and other law firms) announced that they are investigating potential claims against the Board of Directors of Best Buy Company Inc. concerning the board's receipt of an unsolicited acquisition proposal from Best Buy's founder and former Chairman of the Board, Richard Schulze, to take the Company private.
- On July 20, 2012, Levi & Korsinsky, LLP announced that it is investigating Best Buy Co Inc, and its Board of Directors, in connection with the compensation provided to certain of its executive officers.
- On July 7, 2012, Reuters reported that Best Buy Co Inc plans to cut about 2,400 jobs, 1.4% of its workforce including 600 Geek Squad technicians, a spokesman for the Company confirmed.
- On June 27, 2012, Reuters reported that Best Buy Co., Inc. founder Richard Schulze is working with banks including Credit Suisse to explore a potential private takeover of the Company, three sources close to the matter said on June 26, 2012.
- On June 21, 2012, Dow Jones reported that Best Buy has raised its quarterly dividend 6%, an increase the big-box electronics retailer said was in line with its increases in each of the prior three years.
- On June 7, 2012, Reuters reported that Best BUY Co Inc founder Richard Schulze said on Thursday he was resigning as chairman and a director, effective immediately, and was exploring all options for his 20.1% stake in the electronics retailer.
- On May 22, 2012, Best Buy Co., Inc. reported GAAP net earnings from continuing operations of $161 million, or $0.47 per diluted share, for the three months ended May 5, 2012 compared to net earnings from continuing operations of $255 million, or $0.64 per diluted share for the prior-year period. Excluding previously announced restructuring charges, adjusted (non-GAAP) net earnings from continuing operations for the first quarter was $246 million, or $0.72 per diluted share, compared to adjusted net earnings from continuing operations of $258 million, or $0.65 per diluted share, for the prior-year period.
- On May 14, 2012, Best Buy Co., Inc. announced that on May 12, 2012, it elected director Hatim Tyabji to succeed Richard Schulze as Chairman of the Company, effective at the conclusion of the annual meeting on June 21, 2012.
- On April 12, 2012, Reuters reported that Best Buy Co Inc's board is still looking into the personal conduct of the retailer's former Chief Executive even though he already left the Company, a spokesman for the board said on Wednesday.
- On April 10, 2012, Best Buy Co., Inc. announced that Brian Dunn has resigned as Chief Executive Officer and director. Director G. Mike Mikan has been named interim CEO to lead the Company while a search for a new CEO is underway.
- On March 29, 2012, Best Buy Co., Inc. announced that for fiscal 2013, it expects revenue to be in the range of $50-$51 billion, which will again include a 53rd week. Given the expected decline in total CE industry sales, comparable store sales are expected to decline between 2% and 4%, which assumes we maintain overall share, and grow share in focus areas.
Amazon.com (AMZN), Conns (CONN), GameStop (GME), RadioShack (RSH), and Wal-Mart (WMT) are considered major competitors for Best Buy and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Developments
- On August 11, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at RadioShack Corp. The investigation focuses on whether RadioShack and its executives issued materially false and misleading statements regarding the Company's business and financial condition.
- On July 26, 2012, Amazon.com announced that for the third quarter of 2012, it expects net sales to be between $12.9 billion and $14.3 billion, or to grow between 19% and 31% compared with third quarter 2011.
- On July 25, 2012, Reuters reported that RadioShack Corp has decided to suspend its dividend to use some of that cash to pay down near-term debt.
- On July 23, 2012, Reuters reported that Amazon.com Inc. has planned to expand its mobile platform and broaden its offering of devices beyond e-readers and the Kindle Fire tablet.
- On July 6, 2012, Dow Jones reported that Amazon.com is developing a smartphone. Foxconn International Holdings Ltd of China is working with Amazon on the device.
- On July 3, 2012, Reuters reported that Amazon.com Inc reportedly agreed on Monday to buy mapping startup UpNext. GigaOM reported that UpNext Founders Raj Advani, Vik Advani, Robin Har and Danny Moon will move from New York to Seattle, where Amazon is based, to lead the e-commerce company's mapping efforts.
- On June 12, 2012, The Economic Times reported that Wal-Mart Stores, Inc. plans to snap ties with companies that supply products to its stores if they are involved in any kind of corrupt practices, making it the first retail company to undertake such a stringent initiative in India.
- On June 11, 2012, Reuters reported that New York City's pension funds became the latest group to file a derivative lawsuit against Wal-Mart Stores Inc based on reported allegations of bribery in Mexico and a possible cover-up by Wal-Mart officials.
- On June 4, 2012, Amazon.com and Avalon Books announced that Amazon Publishing has acquired the publication rights from Avalon Books to over 3,000 backlist titles predominantly in the Romance, Mystery and Western categories.
- On June 4, 2012, Conn's, Inc. raised earnings guidance for fiscal 2013 to adjusted diluted earnings per share of $1.30 to $1.40.
- On May 17, 2012, GameStop Corp. announced that the Board of Directors also declared a quarterly cash dividend of $0.15 per common share payable on June 12, 2012 to shareholders of record at the close of business on May 29, 2012.
- On May 17, 2012, GameStop Corp. announced that for the second quarter of 2012, it expects comparable store sales to range from -11.0% to -5.0%, diluted earnings per share (EPS) to range from $0.10 to $0.18. The Company maintains its previously announced fiscal 2012 EPS guidance range of $3.10 to $3.30. Comparable store sales are expected to range from -5.0% to flat in fiscal 2012.
- On May 17, 2012, RadioShack Corp announced that its Board of Directors has declared a second-quarter cash dividend of $0.125 per share on the Company's common stock, payable on June 22, 2012, to shareholders of record at the close of business on June 1, 2012.
- On May 17, 2012, Wal-Mart Stores Inc announced that for second quarter of 2013, it expects diluted earnings per share from continuing operations to range between $1.13 and $1.18. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.16 for second quarter of 2013.
The stock has a market capitalization of $6.52B and is currently trading at $19.19 with a 52 week range of $16.97 - $28.53. The stock's year-to-date performance has been -16.60%. It is currently trading above 20 SMA, but below 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.