Best Buy (BBY) Tops Q1 EPS by 39c, Offers FY19 Guidance, Raises Dividend 32%

Best Buy (NYSE: BBY) reported Q1 EPS of $2.42, $0.39 better than the analyst estimate of $2.03. Revenue for the quarter came in at $15.36 billion versus the consensus estimate of $14.49 billion.

Enterprise Comparable Sales Increased 9.0%.

Today, the company announced its Board of Directors approved a 32% increase in the regular quarterly dividend to $0.45 per share, effective immediately, and a share repurchase plan of at least $1.5 billion for FY19, which reflects an updated two-year plan of $3.5 billion compared to the original $3.0 billion two-year plan announced at the beginning of FY18. The regular quarterly dividend will be payable on April 12, 2018 to shareholders of record as of the close of business on March 22, 2018.

FY19 Financial Guidance3

Note: FY19 has 52 weeks compared to 53 weeks in FY18. The extra week occurred in Q4 FY18 and was approximately $760 million in revenue and approximately $0.20 of non-GAAP diluted EPS.

Best Buy is providing the following full year FY19 financial outlook:

• Enterprise revenue of $41.0 billion to $42.0 billion
• Enterprise comparable sales of flat to 2% growth
• Enterprise non-GAAP operating income rate of approximately 4.5%4, which is flat to FY18 on a 52-week basis
• Non-GAAP effective income tax rate of approximately 25.0%4
• Non-GAAP diluted EPS of $4.80 to $5.00, growth of 9% to 13%4

Best Buy is providing the following Q1 FY19 financial outlook:

• Enterprise revenue of $8.65 billion to $8.75 billion
• Enterprise comparable sales growth of 1.5% to 2.5%
• Domestic comparable sales growth of 1.5% to 2.5%
• International comparable sales of flat to 3.0% growth
• Non-GAAP effective income tax rate of 22.0% to 22.5%4
• Diluted weighted average share count of approximately 290 million
• Non-GAAP diluted EPS of $0.68 to $0.734

(Street sees Q1 EPS of $0.76 on revenue of $8.67 billion and FY19 EPS of $4.75 on revenue of $40.91 billion)

For earnings history and earnings-related data on Best Buy (BBY) click here.

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