Best Buy (NYS: BBY) reported earnings on May 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 5 (Q1), Best Buy met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins grew, net margins increased.
Best Buy logged revenue of $11.61 billion. The 16 analysts polled by S&P Capital IQ expected a top line of $11.50 billion on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $10.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.72. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.46 for Q1 were 35% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.0%, 30 basis points worse than the prior-year quarter. Operating margin was 3.4%, 80 basis points better than the prior-year quarter. Net margin was 1.4%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.74 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $49.97 billion. The average EPS estimate is $3.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,129 members out of 1,174 rating the stock outperform, and 47 members rating it underperform. Among 280 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 270 give Best Buy a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Best Buy is hold, with an average price target of $27.64.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Best Buy. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
Add Best Buy to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Best Buy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.