Best Buy (BBY) Surpasses Q1 EPS by 88c, Increases Guidance

May 27, 2021 07:02 AM EDT

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Best Buy (NYSE: BBY) reported first quarter EPS of $ 2.23, $ 0.88 better than analysts’ estimate of $ 1.35. Revenue for the quarter was $ 11.64 billion, compared to a consensus estimate of $ 10.3 billion.

  • Company comparable sales increase of 37.2%

Financial outlook:

Best Buy CFO Matt Bilunas said, “The year has clearly started much stronger than expected. Sales momentum continues into the second quarter and we are improving our outlook for comparable annual sales growth. As we look into the second half of this year, we expect buying behavior to change as customers can spend more time on activities such as dining out, traveling and other events. It’s unclear exactly how this is affecting our business, especially since we had particularly strong sales in the second half of last year. Consequently, for the moment, we are leaving our sales assumptions unchanged for the initial half-year for fiscal year 22. ”

The company presents the following perspectives:

Exercise 22:

  • Company comparable sales growth of 3% to 6%, compared to previous outlook of (-2%) to 1%
  • Company’s non-GAAP gross margin rate2 roughly stable from FY21 rate of 22.4%, which compares to prior guidance slightly below FY21 rate of 22, 4%
  • SG & A2 non-GAAP business growth rate of 6% to 7%, which compares to previous forecasts of a low single digit growth rate
  • Share buybacks of approximately $ 2.5 billion, which compares to previous forecasts of at least $ 2.0 billion
  • Capital expenditure of $ 750 million to $ 850 million, which remains unchanged

T2 FY22:

  • Company comparable sales growth of approximately 17%
  • Company’s non-GAAP gross margin rate2 roughly stable at 22.9% in Q2 FY21
  • Company’s non-GAAP SG & A2 growth of approximately 20%

To view earnings history and earnings data on Best Buy (BBY), click here.

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