Best Buy (NYSE:BBY) shares are on the rise today after the consumer electronics retailer delivered a better-than-expected performance for the fourth quarter. Despite a marginal year-over-year decline of 0.7%, revenue of $14.64 billion surpassed expectations by $60 million. Further, EPS of $2.72 came in ahead of estimates by $0.18.
Amid a challenging consumer electronic environment, BBY’s comparable sales declined by 4.8%. Further, its domestic comparable sales contracted by 5.1%. Still, the company increased its paid membership during the year while maintaining a focus on enhancing customer experience.
Importantly, Best Buy expects industry sales trends to stabilize in Fiscal Year 2025. It estimates full-year revenue of $41.3 billion to $42.6 billion with comparable sales growth of -3% to 0%. In addition, EPS is seen landing between $5.75 and $6.20. For the upcoming quarter, comparable sales are expected to contract by 5%.
Moreover, Best Buy is increasing its quarterly dividend by 2% to $0.94 per share. The BBY dividend is payable on April 11 to investors of record on March 21.
What Is the Target Price for BBY?
Shares of the company have increased by nearly 14% over the past three months. Overall, the Street has a Hold consensus rating on Best Buy alongside an average price target of $73.43. However, analysts’ views on the stock could see a revision following today’s earnings report.
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