Best Buy Co., Inc. ($BBY) Earnings (Q4 FY22)

Best Buy Co., Inc. ($BBY) Earnings and Opinion:


Best Buy Co., Inc. ($BBY) is a company in the Consumer Cyclical sector and operates in the Specialty Retail industry. They currently retail technology products in the United States and Canada. The company operates in two segments, International and Domestic. Best Buy Co., Inc. was incorporated in 1966, and is currently headquartered in Richfield, Minnesota. The company was first publicly traded in 1985.


Best Buy Co., Inc. EPS and Revenue (Q4 FY22):

  • EPS (Non-GAAP) of $2.73 beating expectations of $2.72
  • Revenue of $16.37B missing expectations of $16.58B
  • EPS was down 21.55% (YOY) and Revenue was down 3.38% (YOY)
Best Buy Co., Inc. EPS and Revenue (FY22):
  • EPS (Non-GAAP) of $10.01
  • Revenue of $51.8B
  • EPS was up 26.55% (YOY) and Revenue was up 9.53% (YOY)
Best Buy Co., Inc. Other Notes:
  • 23% increase in quarterly dividends to $0.88 a share 
  • Q4 sales impacted by more constrained inventory and reduction of store hours in January due to Omicron
Opinion: 
Best Buy Co., Inc. is currently trading higher, before the market opens Thursday. The company beat EPS estimates but missed its revenue estimates. Obvious reasons, such as supply chain issues and Omicron variant, caused sales to come in a little bit lower than expected over the past holiday season. However, Best Buy Co., Inc. was able to put up record numbers for Revenue and earnings in the past fiscal year. The major component that sticks out for me, is the dividend hike of 26%. This is huge for income generating investors, as Best Buy looks to give back to its shareholders. I am a little skeptical of FY23 guidance, they expect to receive less revenue than they received this fiscal year. However, the guidance for FY25, shows some record breaking revenues and earnings expected. Personally, this doesn't seem to be a bad company at all. It is a company that has been around for decades, and continues to improve on its quality and earnings. They pay a reasonable dividend and have a reasonable payout ratio, so they are able to invest back into the business, while rewarding shareholders with a dividend. This company has shown a solid growth track over its life on the public market. With this being the case, I think this is a good buy and hold stock. If you are looking for a stock that will generate returns, while generating income, this wouldn't be a bad play for you at all. 


*Information attained from Yahoo Finance and Best Buy
*Estimates attained from Zacks


Comments

Post a Comment

Popular posts from this blog

First Republic Bank: Is it Done?

  What Is Going On With First Republic Bank?         First Republic Bank reported earnings after the closing bell this afternoon. The top line and bottom line actually had some phenomenal beats. However, it was some other mentions in the release that caused the stock to plummet in the after hours. These statements have left a lot of investors questioning of what the future actually looks like for this bank. I just want to take a moment to address my last post, if you have not read that yet, I would highly recommend reading that before you dive into this one (link at the bottom of this post). I go deep into what exactly is happening in the banking world. This will guide you into things that I am going to talk about in this post.     First Republic Bank is located in San Francisco, California and started in 1985. They mainly focus on metropolitan customers in the United States. Neal Holland is the company's CFO and had a couple of words to say. He s...
Read more

Deep Dive: Keysight Technologies, Inc. ($KEYS)

  Keysight Technologies, Inc. ($KEYS)  What is Keysight Technologies: Bloomberg: Keystone Technologies offers electronic measurement services using wireless, modular, and software solutions. Yahoo Finance: Keystone Technologies provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries all over the world.  The company is located in Santa Rosa, California.  The company was founded in 1939 and made its debut on the stock market in October of 2014. Who are Keysight Technologies Clients: Bloomberg SPLC: The ones that stick out most are Samsung, Qualcomm, NVIDIA, Cisco, Intel. Google, Boeing, Airbus, Lockheed Martin, Broadcom, Meta Platforms, Mercedes Benz, LG Electronics, Toyota, TSM, Verizon, HP, AT&T, Amazon, Microsoft, Ford, and Texas Instruments.  The company currently serves 139 customers in total, while getting materials a...
Read more

NIO Inc. ($NIO) Earnings (Q2 FY22)

  NIO Inc. ($NIO) Earnings and Opinion: NIO is a company in the Consumer Cyclical sector and operates in the Auto Manufacturers industry. The company manufactures and sells smart electric vehicles in China. NIO was incorporated in 2014 and is currently headquartered in Shanghai, China. The company made its debut on the stock market in 2018. NIO Earnings Results (metrics in Yen): Revenues of ¥10.29B beating expectations of ¥9.8B Gross Profit of ¥1.34B beating expectations of ¥1.21B Operating Loss of ¥2.36B beating expectations of ¥2.5B Adjusted EPS of ¥-1.34 missing expectations of ¥-1.21 Guidance came in lower than estimates for Q3 Opinion: NIO is failing to find direction, after reporting earnings before the market opened this morning. The company had some solid earnings for this previous quarter, but the guidance is holding it back a little bit. We already saw deliveries for Li Auto and XPeng give an advance look at what NIO would look like this quarter. The guidance looks pretty...
Read more