Best Buy beats by $0.14, reports revs in-line; guides Q1 ~in-line; guides FY20 EPS midpoint above consensus, revs in-line; increases dividend 11%; announces new $3B buyback (60.31)
- Reports Q4 (Jan) earnings of $2.72 per share, excluding non-recurring items, $0.14 better than the S&P Capital IQ Consensus of $2.58; revenues fell 3.7% year/year to $14.8 bln vs the $14.69 bln S&P Capital IQ Consensus.
- Comps +3% vs. +2% ests. From a merchandising perspective, the company generated comparable sales growth across multiple categories, with the largest drivers being wearables, appliances, smart home and gaming. These positive drivers were partially offset by a decline in the mobile phone category. Domestic online revenue of $2.96 billion increased 9.3% on a comparable basis, primarily due to higher conversion rates and increased traffic. As a percentage of total Domestic revenue, online revenue increased 190 basis points to 21.9% versus 20.0% last year. Domestic gross profit rate was 22.1% versus 22.3% last year.
- Co issues mixedguidance for Q1, sees EPS of $0.83-0.88, excluding non-recurring items, vs. $0.83 S&P Capital IQ Consensus; sees Q1 revs of $9.05-9.15 bln vs. $9.15 bln S&P Capital IQ Consensus.
- Co issues guidance for FY20, sees EPS of $5.45-5.65, excluding non-recurring items, vs. $5.48 S&P Capital IQ Consensus; sees FY20 revs of $42.9-43.9 bln vs. $43.39 bln S&P Capital IQ Consensus.
- The board of directors approved a new $3 billion share repurchase authorization for the company's common stock, replacing the existing authorization dated February 2017, which had $1.5 billion in purchases remaining. The company plans to spend between $750 million and $1.0 billion on share repurchases in FY20.
- Co announced its board of directors approved an 11% increase in the regular quarterly dividend to $0.50 per share, effective immediately. This is the sixth consecutive year the company has increased the dividend