Deutsche Bank Reports Positives And Negatives On Best Buy

According to Deutsche Bank, Best Buy BBY is seeing some positives and some negatives. Deutsche Bank reported that 4Q11 results were about as expected at $1.98 versus consensus of $1.85, but most of the upside from a lower tax rate. “Comps were down 5.5% domestically, again about in line with expectations. Gross margins were a bit better than expected. 2012 (Feb 2012) guidance is below consensus, but we don't mind that BBY sets the bar low, although continued weakness in 1Q12 (May 2012) is a concern. We maintain our Buy rating, balancing low valuation, strong free cash flow, improving gross margins and easier comparisons with weak sales trends.” Best Buy closed yesterday at $31.85.