Summary:
Shares of Best Buy Inc. surged 4.2% in premarket trading Thursday following the release of their fiscal fourth-quarter results that exceeded expectations. Despite ongoing challenges in consumer electronics sales, the company experienced significant growth in international business, driving positive momentum.
Financial Highlights:
- Net Income for the quarter fell to $460 million, or $2.12 per share, compared to $495 million, or $2.23 per share, in the same period last year.
- Adjusted Earnings Per Share came in at $2.72, surpassing the FactSet consensus of $2.52, after excluding nonrecurring charges.
- Revenue decreased by 0.6% to $14.65 billion, above the FactSet consensus of $14.56 billion, driven by a 2.7% increase in international sales while U.S. sales declined by 0.9%.
Future Outlook:
Best Buy anticipates adjusted earnings per share in fiscal 2025 to range between $5.75 and $6.20, with revenue projected to be between $41.3 billion and $42.6 billion. This guidance differs slightly from market expectations but demonstrates a positive trajectory for the company’s growth.
Market Performance:
The company’s stock has seen a 12.6% increase over the past three months, outperforming the Consumer Discretionary Select Sector SPDR ETF and S&P 500.
Overall, Best Buy’s strong performance in the face of industry challenges showcases its resilience and strategic vision for future growth.
