Best Buy: A Solid Buy As The Recovery Continues
Helix Investment Research
Helix Investment Research
Best Buy Continues To Show Progress
Best Buy's Dip Is A Great Opportunity
Saj Karsan • 72 Comments
Saj Karsan • 72 Comments
Fri, Jun. 17, 10:03 AM
- Gap (GPS +3.7%) is back over $20 for the first time in over a month with some improved sentiment bubbling up over the retail sector.
- The retailer's +4.5% dividend yield may be luring in some buyers
- Other retail movers ahead of broad averages in early action include Nordstrom (JWN +2.3%), Tailored Brands (TLRD +3.6%), Pier 1 Imports (PIR +3.6%), Best Buy (BBY +2.8%), and DSW (DSW +2.5%). Perhaps it's coincidence, but all those companies boast a dividend yield of over 3%.
Wed, Jun. 15, 8:23 AM| Wed, Jun. 15, 8:23 AM
Mon, Jun. 6, 3:50 PM| Mon, Jun. 6, 3:50 PM | 1 Comment
Tue, May 24, 7:21 AM
- Best Buy (NYSE:BBY) keeps its full-year guidance intact, despite FQ1 results that were ahead of estimates.
- International sales declined 8.11% to $614M. Sales were down 1.2% on a constant currency basis. International gross profit came in at 25.9% of sales vs. 21.6% a year ago.
- Domestic segment revenue was flat at $7.829B. Domestic comparable sales fell 0.1%./ Domestic online sales were up 23.9%.
- Consolidated gross profit rate +170 bps 25.4%. Consolidated operating income +340 bps to 4.4%. SG&A expense rate +10 bps to 20.7%.
- Guidance: Best Buy expects FQ2 EPS of $0.38-$0.42 vs. $0.50 consensus.
- The company announces that CFO Sharon McCollam will step down from her position in June. She will stay with the company in an advisory role. Corie Barry will take over the CFO spot after serving at Best Buy as the chief strategic growth officer.
- Previously: Best Buy beats by $0.09 (May 24)
- BBY -4.94% premarket to $31.36.
Wed, May 18, 10:08 AM
- Retail stocks are lower than broad market averages after Target (TGT -9.3%) sets a gloomy tone on U.S. consumer spending. There was a sense of bewilderment from Target in its release and earnings call commentary over the slowdown in sales post-Easter.
- Wal-Mart is down an even 3% to reach a multi-month low ahead of tomorrow's earnings report.
- Shares of Best Buy (NYSE:BBY) are 3.2% lower after the soft read from Target tilts sentiment. The electronics chain reports earnings on May 24 with analysts expecting revenue of $8.291B and EPS of $0.35 to be disclosed.
- Other chain store stocks reeling after the Target release are Conn's (CONN -0.1%), hhgregg (HGG -2.4%), Sears Holdings (SHLD -3.1%), GameStop (GME -1.6%), Bon-Ton Stores (BONT -2.3%), Dollar Tree (DLTR -2.1%), Big Lots (BIG -2.4%), Dollar General (DG -1.5%), Citi Trends (CTRN -7.4%), and PriceSmart (PSMT -2.9%).
- Previously: Investors edgy over retail stocks after Target disappoints (May 18)
- Previously: Target stung by low traffic trend (May 18)
Thu, Feb. 25, 7:29 AM
- Comparable-store sales declined 1.7% for Best Buy (NYSE:BBY) in FQ4.
- International sales sunk 26.1% to $1.1B (F/X impact -1350 bps). International gross profit rate +40 bps to 22.1%.
- Domestic segment revenue -1.5% to $12.5B. Domestic online sales rose 13.7% to $1.95B to account for 15.6% of all sales.
- Consolidated gross profit rate +40 bps 21.7%. Consolidated operating income flat at 5.7%.
- Guidance: Best Buy expects FQ1 EPS of $0.31-$0.37 vs. $0.39 consensus.
- Previously: Best Buy announces $1B buyback and special dividend (Feb. 25 2016)
- Previously: Best Buy beats by $0.14, revenue in-line (Feb. 25 2016)
- BBY -3.34% premarket to $30.42.
Tue, Jan. 26, 1:18 PM
- Mall stocks are solidly ahead of broad market averages as investors key off today's strong read on consumer confidence. A decent report from Redbook on chain store sales is also in the mix.
- Gap (GPS +4.7%), American Eagle Outfitters (AEO +4.8%), Tilly's (TLYS +5.8%), Children's Place (PLCE +4.5%), Buckle (BKE +5.3%), and Urban Outfitters (URBN +3.7%) are all taking back ground lost earlier this year.
- The gains are slightly less for department store chains J.C. Penney (JCP +2.4%), Kohl's (KSS +2.6%), and Macy's (M +2.7%).
- Best Buy (BBY +3.5%) and Target (TGT +2.3%) are also trying to break out.
- Previously: Consumer confidence improves 1.8 points in January (Jan. 26)
- Previously: Weather plays a mixed role (Jan. 26)
Thu, Jan. 14, 1:19 PM
- Best Buy (BBY -9.2%) fell to a 52-week low after the company's report on holiday sales failed to please investors.
- The retailer's weak performance in key categories seems to have added another layer of anxiety to trading around GameStop (GME -5.6%) which is also at a 52-week low.
- Hhgress (HGG) dropped below the $2 mark to set a 52-week low.
- Brick-and-mortar mainstay Barnes & Noble (BKS +1.6%) etched out a new 52-week low this morning before recovering.
- Previously: Best Buy lower after holiday numbers underwhelm (Jan. 14 2016)
Thu, Jan. 14, 9:16 AM
Fri, Jan. 8, 10:14 AM
- Shares of Best Buy (BBY -4.6%) are under pressure after Cleveland Research warns on sales trends. Also factoring in, the electronics category was weak at several other retail chains during the holiday season.
- The company is due to report on holiday sales next week which is likely to add even more volatility.
- Best Buy is down 23% over the last three months.
Nov. 30, 2015, 12:55 PM
- It's not a happy Cyber Monday for most retail chain stock on broad concerns over soft store traffic and weak pricing.
- Notable decliners include Guess (GES -5.5%), Express (EXPR -4.6%), Zumiez (ZUMZ -7%), Foot Locker (FL -1.7%), Finish Line (FINL -2.1%), Urban Outfitters (URBN -4.4%), Francesca's (FRAN -2.9%), DSW (DSW -2.7%), and Men's Wearhouse (MW -3.3%).
- Discounters are down sharply, led by Big Lots (BIG -5.4%), Gordmans Stores (GMAN -6%), and Five Below (FIVE -4.3%).
- Big box retailers Wal-Mart (WMT -1.3%), Costco (COST -1.4%), and Target (TGT -1.4%) are lower with concerns over website capabilities lingering in the background. Best Buy (BBY +1.1%) is a bit of a surprise with a 1.4% gain after reports indicate demand for Apple products is exceptionally strong.
- Specialty retailers such as The Container Store (TCS +1.6%), Party City (PRTY +1.2%), and The Michaels Companies (MIK +1.4%) are also retail outliers as consumers are seen spending a higher percentage of their disposable income close to their homes.
- Previously: Retail stocks on watch after Amazon scoops up more Black Friday sales (Nov. 30 2015)
- Previously: Department stores stocks weak on holiday sales anxiety (Nov. 30 2015)
Nov. 19, 2015, 9:14 AM
Nov. 19, 2015, 7:19 AM
- Comparable-store sales rose 0.8% for Best Buy (NYSE:BBY) in FQ3. Analysts expected a mark closer to 1.5%.
- International sales were down 29.9% to $729M. International gross profit rate -10 bps to 22.5%.
- Domestic segment revenue +1.2% to $8.09B. Domestic comparable-store sales were up 0.8%. Online comparable sales +21% to account for 8.8% of all sales.
- Domestic gross profit rate +110 bps to 24.1%. A higher mix of large screen TVs was a factor.
- Consolidated gross profit rate +90 bps 23.9%. Consolidated operating income +30 bps to 2.6%.
- Guidance: Best Buy expects flat domestic revenue growth in Q4 and a 30% drop in international sales.
- Previously: Best Buy beats by $0.06, misses on revenue (Nov. 19 2015)
- BBY -8.2% premarket to $28.75.
Oct. 14, 2015, 10:57 AM
- The retail sector is reeling after Wal-Mart warns on the impact to its bottom line of higher wages.
- Target (TGT -3.8%), Macy's (M -1.1%), Costco (COST -1.9%), and Best Buy (BBY -4.2%) all took a sharp turn down right after Wal-Mart set profit guidance lower.
- Management with Wal-Mart also seemed a bit hesitant to gush over the back-to-school season and upcoming holiday period which could impact how investors look at Q4 earnings in the sector.
- Previously: Wal-Mart slides after warning on impact of higher wage levels (Oct. 14 2015)
Aug. 25, 2015, 9:19 AM| Aug. 25, 2015, 9:19 AM | 7 Comments
Aug. 25, 2015, 7:18 AM
- Best Buy (NYSE:BBY) recorded a strong 3.8% increase in comparable-store sales in Q2, led by a 17% rise in the online sales comp. Analyst expected a mark closer to 1%.
- The company saw another sharp drop in international sales during Q2 amid store closures and F/X pressure. Sales were down 26% to $650M.
- International gross profit rate +50 bps to 23.4%.
- Domestic segment revenue +3.9% to $7.88B.
- Domestic comparable-store sales were up 2.7% as installment billing contributed positively. The comp for appliances was +21%.
- Domestic gross profit rate +130 bps to 24.7%.
- Consolidated gross profit rate +120 bps 24.6%. Consolidated operating income +70 bps to 3.4%.
- Previously: Best Buy beats by $0.15, beats on revenue
- BBY +11.4% premarket to $32.60.
Best Buy Co., Inc. is a multinational retailer, which provides consumer electronics, home office products, entertainment products, appliances and related services. The company operates through two business segments: Domestic and International. The Domestic segment is comprised of the operations... More
Industry: Electronics Stores
Country: United States
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