Best Buy (BBY) Stock Increases Over 11%: Details

By Amit Chowdhry ● Nov 22, 2022
  • The stock price of Best Buy (BBY) increased by over 11% intraday today. This is why.

The stock price of Best Buy (BBY) increased by over 11% intraday today.

Why: Q3 results

Results: Best Buy reported a Q3 EPS of $1.38, which was $0.35 higher than analyst estimates of $1.03. And the revenue for the quarter was $10.59 billion compared to the consensus estimate of $10.32 billion.

KEY QUOTES (featuring guidance):

“I am proud of our team’s execution and their relentless focus on providing amazing service to our customers during what is clearly a challenging environment for our industry. Throughout the quarter, we were committed to balancing our near-term response to current conditions and managing well what is in our control, while also advancing our strategic initiatives and investing in areas important for our long-term growth. As a result, we delivered Q3 results ahead of our expectations coming into the quarter.”

“The holiday shopping season has begun, and now, more than ever, our customers are looking to bring joy back into their celebrations. We have strategically and effectively managed our inventory flow based on a shopping pattern that we believe looks more similar to historical holiday periods, with customer shopping activity concentrated on Black Friday week, Cyber Monday and the two weeks leading up to December 25. We are excited about the promotions and values we have planned, including special offers available to Totaltech and MyBestBuy members, and have tailored our offerings to delight our customers, whatever their budget.”

— Corie Barry, Best Buy CEO

“We are updating our FY23 outlook to flow through our better-than-expected Q3 results while keeping our Q4 expectations unchanged. We now expect comparable sales to decline approximately 10% and our non-GAAP operating income rate to be slightly higher than 4.0%.”

“From a capital allocation perspective, we resumed share repurchases in November after pausing during Q2 and now expect to spend approximately $1 billion in share repurchases this year.”

— Matt Bilunas, Best Buy CFO