Best Buy (BBY) reported earnings on Thur 11/17/16 (b/o)

** charts before earnings **

** charts after earnings **

Best Buy beats by $0.15, beats on revs; guides Q4 EPS above consensus, revs below consensus including recall headwind:

• Reports Q3 (Oct) earnings of $0.62 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus of $0.47; revenues rose 1.4% year/year to $8.95 bln vs the $8.85 bln Capital IQ Consensus. 
• Comps +1.8% vs. +1% guidance.
• Domestic revenue of $8.2 billion increased 1.3% versus last year driven by comparable sales growth of 1.8%, partially offset by the loss of revenue from 14 large format and 23 Best Buy Mobile store closures. Industry revenue in the NPD-tracked categories declined 3.1%.4
• From a merchandising perspective, comparable sales growth in home theater, mobile phones, wearables and connected home was partially offset by declines in gaming.
• Domestic online revenue of $881 million increased 24.1% on a comparable basis primarily due to increased traffic, higher average order values and higher conversion rates. As a percentage of total Domestic revenue, online revenue increased 200 basis points to 10.8% versus 8.8% last year.
• Domestic GAAP and non-GAAP gross profit rate was 24.7% versus 24.1% last year. The 60-basis point increase was primarily due to improved margin rates in the computing and home theater categories, which were partially offset by the mobile category.
• Co issues guidance for Q4, sees EPS of $1.62-1.67, excluding non-recurring items, vs. $1.58 Capital IQ Consensus; sees Q4 revs of $13.4-13.6 bln vs. $13.7 bln Capital IQ Consensus; comparable sales change in the range of (1.0%) to 1.0% vs. ests near +1.2%; domestic comparable sales change in the range of (1.0%) to 1.0%; International comparable sales change in the range of (2.0%) to 2.0%
• "From a revenue standpoint, we are excited by the rate of technology innovation, the quality of our assortment and our ability to execute. That being said, we have updated our original expectations to incorporate the impact of recent product recalls and the fact that certain products will simply not be available for sale during our fourth quarter. The expected impact of these recalls on our fourth quarter Domestic revenue is ~$200 million."