A view of a Best Buy retail store on August 29, 2019 in San Bruno, California.
Justin Sullivan | Getty Images
Best Buy‘s fourth-quarter results exceeded analysts’ expectations, driven by strong sales gains over the holidays.
Shares are up less than 1% in premarket trading. Shares have gained about 36% over the past 12 months, bringing its market value to $21.3 billion.
Here’s what Best Buy reported compared with what analysts were expecting, based on a survey of analysts by Refinitiv:
- Earnings per share, adjusted: $2.90 vs. $2.75 expected
- Revenue: $15.2 billion vs. $15.05 billion expected
- Same-store sales growth: 3.2% vs. 1.9% expected
In the fourth quarter ended Feb.1, Best Buy said net income grew to $745 million, or $2.84 per share, from $735 million, or $2.69 per share, a year earlier.
Excluding items, Best Buy earned $2.90 per share, which was higher than the $2.75 per share analysts were expecting, according to Refinitiv.
Best Buy said revenue grew to $15.2 billion, from $14.8 billion last year, and was higher than the $15.05 billion analysts expected.
Sales at stores open at least a year rose 3.2%. Analysts were expecting a 1.9% gain.
Best Buy CEO Corie Barry said in a news release that fourth-quarter results show the retailer “can meet customers when and where they want.”
“We offered compelling holiday deals that resonated with customers and provided a seamless shopping experience, great inventory availability and fast and free delivery,” she said.
Over the holiday season, Best Buy offered next-day delivery on thousands of items with no minimum purchase or membership required. Customers could pick up products in store within an hour of placing an order.
The retailer also made it possible for shoppers in New York City and Chicago to pick up their purchases at 175 alternate pickup locations. In New York, customers could pick up at CVS and UPS and in Chicago, they picked up at UPS.
The retailer’s forecast for fiscal 2021 calls for an adjusted earnings range of $6.10 to $6.30 per share and for same-store sales to be flat to up 2.0%. Revenue will be between $43.3 billion to $44.3 billion, the company said.
Analysts surveyed by Refinitiv were calling for Best Buy to earn $6.25 per share on revenue of $44.22 billion in fiscal 2021