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Thursday, November 19, 2015

Best Buy (BBY) reported earnings Thur 19 Nov 2015 (before open)

** charts before earnings **








** charts after earnings **






Best Buy beats by $0.06, reports revs in-line; sees Q4 domestic rev flat with operating margins slightly lower:
  • Reports Q3 (Oct) earnings of $0.41 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.35; revenues fell 2.4% year/year to $8.82 bln vs the $8.83 bln Capital IQ Consensus. 
    • Comps +0.8% (+0.5% ex-installment billing) vs. ests near +1%.
      • Domestic consumer electronics comps +3%; computing and mobile phones -1.5%, appliances +16.4%
    • Online comparable sales increased 18% as our new mobile site and overall enhanced dotcom capabilities continued to drive higher conversion rates and increased traffic. These results were achieved in a context where industry sales in the NPD-tracked categories were down 4.3%.
    • "we have created an expansive assortment of amazing technology products, especially in 4K TVs, health & wearables, connected or smart devices, drones, and many other giftable items. These products will be offered at very attractive prices to our customers throughout the Holiday shopping season"
  • Co sees negative low-single digit revenue growth rate for Q4 vs. -2.2% consensus; and a non-GAAP operating income rate decline of 25 to 45 basis points.

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