BBY Earnings: Top Buy Reports Mixed First Quarter Results

Best offer (NYSE: BBY) reported mixed first-quarter results on Thursday. The consumer electronics retailer generated first-quarter revenue of $8.85 billion, down 6.5% year-over-year and less than the consensus estimate of $8.96 billion. BBY’s comparable sales declined 6.1% in the first quarter.

The retailer reported first-quarter adjusted earnings of $1.20 per share, up 4.3% year-over-year, beating analysts’ consensus estimates of $1.08 per share.

BBY sales breakdown

The company’s domestic business segment continued to be the largest contributor to the retailer’s business, accounting for more than 90% of its total revenue in the first quarter. The domestic business segment generated sales of $8.2 billion, down 6.8% year-over-year.

The company’s management noted that macroeconomic factors had created a “difficult selling environment,” which led to lower-than-expected sales.

BBY Guidelines for FY25

Looking ahead, management said the company expects second-quarter comparable sales to decline by approximately 3% and adjusted operating income to decline by approximately 3.5%.

For FY25, BBY expects revenue to be in the range of $41.3 billion to $42.6 billion, while adjusted diluted earnings per share will likely be in the range of $5.75 to $6.20. Comparable sales are expected to decline 3% or remain flat.

BBY share purchase and dividends

During the first quarter of FY25, the company paid $202 million in dividends and completed $50 million in share repurchases, returning a total of $252 million to shareholders.

Additionally, BBY announced that its board of directors has approved a regular quarterly cash dividend of $0.94 per common share. The quarterly dividend will be payable on July 11 to shareholders of record as of June 20, 2024.

What is the future of BBY shares?

Analysts remain cautiously optimistic about BBY stock, with a consensus rating of “Moderate Buy” based on six “buy” and “hold” ratings and two “sell” ratings. Year-to-date, BBY is down over 6%, and BBY’s $85.33 average price target implies an 18.7% upside potential from current levels. These analyst ratings are likely to change following BBY’s Q1 results today.