Best Buy Shares Slump On Soft Comp Sales Prediction For Q4

Best Buy Co Inc BBY reported third-quarter FY22 Enterprise sales growth of 0.5% year-on-year, to $11.91 billion, beating the analyst consensus of $11.56 billion. Enterprise comparable sales increased 1.6% versus 23.0% growth last year. Non-GAAP EPS of $2.08 beat the analyst consensus of $1.91.

• Domestic segment revenue climbed 1.2% Y/Y, and International revenue fell 7.7%. Domestic comparable sales improved 2.0% versus 22.6% growth last year.
• Gross profit rose 0.25% Y/Y to 2.8 billion, with the margin contracting 10 basis points to 23.5%.
• The GAAP operating margin expanded 90 basis points to 5.6%, while the non-GAAP operating margin contracted 30 basis points to 5.8%. Operating income for the quarter rose 19.4% to $670 million.
• Best Buy held $3.5 billion in cash and equivalents as of October 30, 2021. Cash provided by operating activities for the nine months totaled $1.1 billion.
• The company's board declared a regular quarterly cash dividend of $0.70 per share, payable on January 4, 2022, to shareholders of record on December 14, 2021.
• Outlook: Best Buy sees Q4 FY22 enterprise revenue of $16.4 billion - $16.9 billion versus the consensus of $16.7 billion. Enterprise comparable sales growth of (2)% - 1% in Q4.
• For FY22, the company raised revenue outlook to $51.8 billion - $52.3 billion (previously $51 billion - $52 billion) versus the consensus of $51.57 billion.
• It sees Enterprise comparable sales growth of 10.5% - 11.5% (prior 9% - 11% growth).
• Price Action: BBY shares are trading lower by 14.5% at $118 on the last check Tuesday.