Shares of Best Buy (NYSE: BBY) fell in pre-market trading on Thursday after the consumer electronics retailer forecasted FY24 adjusted diluted EPS between $5.70 and $6.50 below analysts’ estimates of $6.71. Moreover, the company expects comparable sales in FY24 to decline in the range of 3% to 6%, more than analysts’ estimates of a decline of 1.9%. BBY has projected revenues between $43.8 billion and $45.2 billion in FY24.
Best Buy’s CFO Matt Bilunas commented, “As we enter FY24, the consumer electronics industry continues to feel the effects of the broader macro environment and its impact on consumers.”
Bilunas added that in FY24, the company expects “to expand our gross profit rate approximately 40 to 70 basis points versus the past year as we evolve our membership program and realize benefits from our cost optimization efforts.”
In the fourth quarter, BBY reported adjusted earnings of $2.61 per diluted share versus $2.73 in the same period last year, which beat analysts’ consensus estimate of $2.10 per share.
Sales declined by 9.9% year-over-year to $14.7 billion, in line with analysts’ expectations of $14.72 billion. Comparable sales in Q4 FY23 fell by 9.3% year-over-year.
In addition, the company’s Board of Directors also approved a 5% rise in the quarterly dividend to $0.92 per share which will be payable on April 13 to shareholders of record as of the close of business on March 23. In FY23, BBY bought back stock worth $1.0 billion and paid out dividends of $789 million, returning a total of $1.8 billion to shareholders.
Overall, Wall Street analysts are sidelined about BBY stock with a Hold consensus rating based on six Holds and one Sell.
