Best Buy: First quarter EPS more than tripled

  •   04/06/2021 - 13h33
  •   DEHOUI Lionel

As always, this weekend's economic news was marked by several sensitive topics. There were quarterly financial results releases from companies such as Nvidia, Groupe Parot and ADL Patner. While other groups unveiled their annual performance, some won important contracts (AKKA Technologies and Technip Energies). In addition, Best Buy reported on its first quarter.

Best Buy: First quarter EPS more than tripled

Best Buy's Q1 adjusted EPS and revenue

The figures revealed by Best Buy in terms of its activity in the first accounting quarter are more than surprising. Over the three-month period, the company posted a very strong increase in adjusted EPS (more than tripled to +232%) to $2.23. This is well ahead of consensus.

As for the adjusted operating margin, it improved by 3.5 points and finally reached 6.4%. Best Buy is a consumer electronics retailer that saw significant revenue growth in the quarter.

The company's revenue was over $11.6 billion, a significant 36% increase. The increase in revenues is estimated at 37.2% on a like-for-like basis despite the slowdown in online sales in the United States. Nevertheless, online sales grew by 7.6%.

Note: Best Buy's strong first quarter performance has enabled it to raise its guidance for the current year. The company now expects like-for-like sales growth of between +3% and +6% for the current year. Management had anticipated like-for-like sales growth of between -0.2% and +1%.

 

The fourth quarter of the previous year

In the previous quarter: the last three months of the prior year, Best Buy delivered adjusted EPS of $3.48. This was in line with the company's expectations of like-for-like sales growth. This was 20% growth in line with the group's expectations in general. Operating margin for the three months improved by 0.4 percentage points to 6.9%.

Revenues for the fourth quarter were $16.9 billion, up 11.5%. The like-for-like increase was 12.6%, driven by Internet sales in the U.S. market. In fact, online sales in the United States increased by 89.3%.

On the other hand, Best Buy's Board of Directors approved an improved dividend of 27% for the quarter. That said, the quarterly dividend was 70 cents per share.

Note: Best Buy's board of directors had at the same time authorized new share repurchases. These transactions are recorded at $5 billion.

 

About Best Buy

Best Buy is an American company specializing in the sale of consumer electronics. Its presence is most noticeable in Canada and the United States. It is headquartered in Richfield, Minnesota, USA. Its main shareholder remains Capital Research & Management.