===Best Buy (BBY) reported earnings on Thur 2 March 23 (b/o)

 

Best Buy beats by $0.47, reports revs in-line, comps -9.3%; guides FY24 EPS and revs below consensus; also increases dividend by 5%

• Reports Q4 (Jan) earnings of $2.61 per share, excluding non-recurring items, $0.47 better than the S&P Capital IQ Consensus of $2.14; revenues fell 10.0% year/year to $14.73 bln vs the $14.80 bln S&P Capital IQ Consensus.
  • Comparable sales declined -9.3%.
• Co issues downside guidance for FY24, sees EPS of $5.70-6.50, excluding non-recurring items, vs. $6.67 S&P Capital IQ Consensus; sees FY24 revs of $43.80-45.20 bln vs. $45.76 bln S&P Capital IQ Consensus.
  • Co guides to FY24 comps of -6% to -3% with the most sales pressure in Q1 (Apr), as year-over-year comparisons ease through the year.
• Co also increases quarterly dividend by 5% to $0.92/sh, new yield is 4.5%.
• "Today we are reporting Q4 sales that were in line with our expectations and profitability that was better than expected...We believe the macro and industry backdrop will continue to be pressured in FY24 and we will continue to adjust."
• "As we enter FY24, the consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers...During FY24, we expect to expand our gross profit rate approximately 40 to 70 basis points versus the past year as we evolve our membership program and realize benefits from our cost optimization efforts."