Post Earnings Coverage as Best Buy Outperform Expectations

LONDON, UK / ACCESSWIRE / August 29, 2016 / Active Wall St. announces its post-earnings coverage on Best Buy Co., Inc. (NYSE: BBY). The company announced its second quarter fiscal 2017 (Q2 FY17) earnings on August 23rd, 2016. The Richfield, Minnesota-based company reported a 0.8% y-o-y growth in its comparable store sales and 23.7% y-o-y growth in its comparable online sales. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on BBY. Get our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=BBY.

Earnings Review

During the reported quarter, Best Buy reported relatively flat revenue of $8.53 billion compared to prior-year period. However, it outperformed the market expectation of $8.39 billion. The company’s non-GAAP diluted EPS from continuing operations improved 16% y-o-y to $0.57 in Q2 FY17 from $0.49 in the corresponding period of fiscal 2016. Additionally, its GAAP diluted earnings from continuing operations also improved 22% y-o-y to $0.56 per share, from $0.46 per share, in the year ago period.

“Our teams delivered a strong second quarter, with better-than-expected revenue and profitability in both our Domestic and International businesses,” said Best Buy Chairman and CEO Hubert Joly.

Market-Wise

Best Buy’s Domestic revenue registered a nominal growth of 0.1% on y-o-y basis to $7.89 billion versus last year, primarily driven by comparable sales growth of 0.8% which was partially offset by the loss of revenue from 12 large format and 22 Best Buy Mobile store closures.

Additionally, the company’s International revenue declined 1.0% y-o-y to $644 million in the reported quarter driven by a negative foreign currency impact of approximately 510 basis points. However, on constant currency basis, International revenue grew 4.1% on y-o-y basis driven by growth in both Canada and Mexico.

For Q2 FY17, the consumer electronics retailer’s Domestic gross profit rate was down to 24.0% from 24.7% in the year ago quarter. Meanwhile, its International segment’s gross profit rate improved to 25.9% in the reported quarter from 23.4% last year. For three months ended on July 30, 2016, Best Buy’s Domestic SG&A expenses were $1.61 billion, or 20.4% of revenue, versus $1.64 billion, or 20.8% of revenue, in the corresponding last year period. Moreover, the company’s International SG&A expenses came in at $165 million, or 25.6% of revenue, compared to $175 million, or 26.9% of revenue, in the year ago quarter.

As of the quarter ended on July 30, 2016, Best Buy had cash and cash equivalents of $1.86 billion compared to $1.80 billion on August 01, 2015. Furthermore, the company had long-term debt of $1.34 billion from $1.22 billion as of August 1, 2015.

Share Repurchases and Dividends

In-line with the announcement made on February 25, 2016, for the intent to repurchase $1 billion of its shares over a two-year period, Best Buy bought 7.1 million shares for a total of $219 million during the reported quarter. The company has repurchased 10.3 million shares for a total of $316 million till date in fiscal year 2017.

On July 5, 2016, Best Buy paid a quarterly dividend of $0.28 per common share outstanding, or $90 million. The company also informed that it has paid $325 million till date in from of regular and special dividends during the current fiscal year.

Earnings Outlook

For the upcoming quarter, the company expects Enterprise revenue to gown 1% y-o-y and to be in the range of $8.8 billion to $8.9 billion. The company’s management anticipates Enterprise and Domestic comparable sales to tickle up by 1% y-o-y. Best Buy is also forecasting non-GAAP diluted EPS to be in the range of $0.43 to $0.47.

Stock Performance

Best Buy’s shares closed marginally lower by 0.08%, to end the trading session at $39.48 on August 26, 2016. The stock recorded a total volume of 5.51 million shares. In the last one month and the previous three months, the company’s share price has gained 18.36% and 24.42%, respectively. Moreover, since the start of the year, shares of Best Buy have advanced 33.79%. Currently, the stock traded at a P/E ratio of 13.07.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT
For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@activewallst.com
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 444442