Sales miss puts Best Buy shares under pressure

Best Buy Co. Inc. shares sank nearly 6% in Thursday premarket trading after the consumer electronics retailer reported second-quarter sales that missed expectations. Net income totaled $238 million, or 89 cents per share, down from $244 million, or 86 cents per share, in 2018. Adjusted EPS of $1.08 beat the 99-cent FactSet consensus. Revenue of $9.54 billion was up from $9.38 billion last year and below the $9.55 billion FactSet guidance. Same-store sales rose 1.6%, while same-store sales domestically were up 1.9%. FactSet forecast enterprise same-store sales growth of 2.1%. For the third quarter, Best Buy is forecasting revenue of $9.65 billion to $9.75 billion, same-store sales growth of 0.5% to 1.5%, and adjusted EPS of $1.00 to $1.05. FactSet is guiding for revenue of $9.78 billion, same-store sales growth of 2.2% and EPS of 94 cents. For the year, Best Buy‘s outlook is for revenue of $43.1 billion to $43.6 billion, versus previous guidance for $42.9 billion to $43.9 billion, same-store sales growth of 0.7% to 1.7%, compared with 0.5% to 2.5% previously, and adjusted EPS of $5.60 to $5.75, versus $5.45 to $5.65 previously. FactSet‘s guidance is for revenue of $43.6 billion, a same-store sales increase of 1.9% and EPS of $5.71. Best Buy stock is up 30.3% for the year to date while the S&P 500 index has gained 15.2%.

Leave a Reply

Your email address will not be published. Required fields are marked *

*