Best Buy (NYSE:BBY) Issues FY 2027 Earnings Guidance

Best Buy (NYSE:BBY) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 6.300-6.600 for the period, compared to the consensus EPS estimate of 6.490. The company issued revenue guidance of $41.2 billion-$42.1 billion, compared to the consensus revenue estimate of $41.8 billion.

Best Buy Stock Performance

Shares of NYSE:BBY opened at $78.16 on Friday. The company has a market cap of $16.47 billion, a P/E ratio of 14.47, a PEG ratio of 1.85 and a beta of 1.22. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.43 and a current ratio of 1.12. Best Buy has a one year low of $55.10 and a one year high of $84.99. The business’s 50-day simple moving average is $62.29 and its 200 day simple moving average is $66.88.

Best Buy (NYSE:BBY) last announced its earnings results on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, beating the consensus estimate of $1.22 by $0.06. The business had revenue of $8.94 billion for the quarter, compared to the consensus estimate of $8.82 billion. Best Buy had a return on equity of 48.70% and a net margin of 2.73%.The company’s revenue was up 1.9% on a year-over-year basis. During the same period last year, the business posted $1.15 EPS. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. On average, sell-side analysts forecast that Best Buy will post 6.5 earnings per share for the current fiscal year.

Best Buy Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 18th will be issued a dividend of $0.96 per share. This represents a $3.84 annualized dividend and a dividend yield of 4.9%. The ex-dividend date is Thursday, June 18th. Best Buy’s dividend payout ratio (DPR) is presently 71.11%.

Analyst Ratings Changes

A number of brokerages have weighed in on BBY. Jefferies Financial Group raised their price objective on Best Buy from $83.00 to $89.00 and gave the company a “buy” rating in a research note on Thursday. HSBC lowered their price objective on Best Buy from $96.00 to $85.00 in a research note on Thursday, February 26th. Evercore raised their price objective on Best Buy from $65.00 to $85.00 in a research note on Friday. Guggenheim restated a “buy” rating and set a $90.00 price objective on shares of Best Buy in a research note on Friday. Finally, Morgan Stanley raised their price objective on Best Buy from $72.00 to $80.00 and gave the company an “equal weight” rating in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $78.60.

Insider Activity

In other news, EVP Jason J. Bonfig sold 6,336 shares of Best Buy stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $405,630.72. Following the completion of the transaction, the executive vice president owned 79,137 shares in the company, valued at approximately $5,066,350.74. This trade represents a 7.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Corie S. Barry sold 42,869 shares of Best Buy stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $2,744,473.38. Following the completion of the transaction, the chief executive officer owned 523,138 shares of the company’s stock, valued at approximately $33,491,294.76. The trade was a 7.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 77,247 shares of company stock worth $4,945,353 over the last quarter. Corporate insiders own 0.47% of the company’s stock.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy reported Q1 adjusted EPS of $1.28, above estimates of $1.22, and revenue of $8.94 billion, also ahead of forecasts, with comparable sales rising 2.0%. Best Buy Q1 Earnings Beat Estimates, Comparable Sales Rise 2%
• Positive Sentiment: The company reaffirmed its full-year guidance and highlighted improving margins and stronger demand in gaming, computing, and cellphones, suggesting the turnaround is gaining traction. Best Buy Reports First Quarter Results
• Positive Sentiment: Several analyst firms raised price targets after the earnings release, including Jefferies, Loop Capital, Guggenheim, Morgan Stanley, Citigroup, and others, indicating improving sentiment around the stock. Analyst rating updates
• Positive Sentiment: Retail-industry news also pointed to selective consumer spending still favoring value-focused names like Best Buy, adding to the rally. Retail Rally Sends Kohl’s, Best Buy, Dollar Tree Up As Much As 18%
• Neutral Sentiment: DA Davidson reaffirmed its buy rating but set a $78 price target, which is roughly in line with the current share price and does not materially change the valuation debate. DA Davidson rating reaffirmation
• Neutral Sentiment: Best Buy also announced a quarterly dividend of $0.96 per share, reinforcing its income appeal for investors. Dividend announcement

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. UMB Bank n.a. increased its holdings in shares of Best Buy by 6.2% during the fourth quarter. UMB Bank n.a. now owns 3,158 shares of the technology retailer’s stock worth $211,000 after buying an additional 185 shares in the last quarter. Parallel Advisors LLC increased its holdings in shares of Best Buy by 8.2% during the third quarter. Parallel Advisors LLC now owns 2,677 shares of the technology retailer’s stock worth $202,000 after buying an additional 202 shares in the last quarter. Lido Advisors LLC increased its holdings in shares of Best Buy by 2.7% during the third quarter. Lido Advisors LLC now owns 11,918 shares of the technology retailer’s stock worth $912,000 after buying an additional 317 shares in the last quarter. Palisade Asset Management LLC acquired a new position in shares of Best Buy during the third quarter worth $25,000. Finally, Geneos Wealth Management Inc. increased its holdings in shares of Best Buy by 30.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,466 shares of the technology retailer’s stock worth $98,000 after buying an additional 338 shares in the last quarter. Institutional investors and hedge funds own 80.96% of the company’s stock.

About Best Buy

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.