--> +8% Pre-Market
Best Buy beats by $0.08, beats on revs; reaffirms Q2 guidance, including stronger domestic business offset by Canadian restructuring
Reports Q1 (Apr) earnings of $0.37 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.29; revenues fell 0.9% year/year to $8.56 bln vs the $8.46 bln consensus.
- Q1 comps +0.6% (-0.7% ex-installment billing); co guided for flat to low single digit decline; non-GAAP gross margin +20 bps to 22.9%; non-GAAP operating income margin flat at 2.6% vs. -30-50 bps guidance.
- Results "exceeded our expectations during the quarter due to a stronger-than-expected performance in the Domestic business."
- Reaffirms Q2: Enterprise outlook for Q2 FY16 includes (1) a flat to negative low-single digit revenue growth rate and (2) a year-over-year non-GAAP operating income rate decline in the range of negative 30 to 50 basis points, which is in-line with our previous outlook. This outlook, however, now assumes a strengthening in our Domestic business versus our previous outlook, offset by the near-term impacts of the Canadian brand consolidation.