Best Buy (BBY, Financial) reported that it faced restructuring charges amounting to $109 million in the first quarter of fiscal year 2026. These expenses are linked to a major restructuring plan initiated within Best Buy's Health division at the start of this fiscal period. The company indicated that the charges were primarily due to asset impairments and other related costs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Best Buy Co Inc (BBY, Financial) is $83.68 with a high estimate of $101.00 and a low estimate of $64.00. The average target implies an upside of 26.96% from the current price of $65.91. More detailed estimate data can be found on the Best Buy Co Inc (BBY) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Best Buy Co Inc's (BBY, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Best Buy Co Inc (BBY, Financial) in one year is $76.04, suggesting a upside of 15.37% from the current price of $65.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Best Buy Co Inc (BBY) Summary page.
BBY Key Business Developments
Release Date: March 04, 2025
- Revenue: $13.9 billion for the fourth quarter.
- Adjusted Operating Income Rate: 4.9% for the fourth quarter.
- Adjusted Earnings Per Share (EPS): $2.58 for the fourth quarter.
- Enterprise Comparable Sales Growth: 0.5% for the fourth quarter.
- Domestic Comparable Sales Growth: 0.2% for the fourth quarter.
- International Comparable Sales Growth: 3.8% for the fourth quarter.
- Domestic Gross Profit Rate: Increased by 50 basis points to 20.9%.
- International Gross Profit Rate: Increased by 40 basis points to 21.4%.
- Capital Expenditures: $706 million for fiscal '25.
- Shareholder Returns: $1.3 billion returned through share repurchases and dividends in fiscal '25.
- Quarterly Dividend: Increased to $0.95 per share, a 1% increase.
- Fiscal '26 Revenue Guidance: $41.4 billion to $42.2 billion.
- Fiscal '26 Comparable Sales Guidance: Flat to 2% growth.
- Fiscal '26 Adjusted Operating Income Rate Guidance: 4.2% to 4.4%.
- Fiscal '26 Adjusted EPS Guidance: $6.20 to $6.60.
- Fiscal '26 Capital Expenditures Guidance: $700 million to $750 million.
- Fiscal '26 Share Repurchases: Approximately $300 million expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Best Buy Co Inc (BBY, Financial) reported better-than-expected sales and earnings for the fourth quarter, with positive enterprise comparable sales growth of 0.5%.
- Digital sales accounted for almost 40% of total domestic sales in Q4, with significant growth in app engagement and traffic.
- The company saw strong customer response to early Black Friday sales and doorbusters, contributing to a strong start to the holiday quarter.
- Best Buy Co Inc (BBY) achieved a 9% domestic comparable sales growth in computing and tablet categories, with laptop sales growth increasing to 10%.
- The company reported its lowest employee turnover metrics in six years, attributed to investments in onboarding, training, and creating a stable work environment.
Negative Points
- Best Buy Co Inc (BBY) experienced a 2.3% comparable sales decline on a 52-week basis, indicating a softer sales environment.
- The company faced declines in product categories such as appliances, home theater, and gaming.
- The fiscal '26 guidance does not include the impact of recently enacted tariffs, which could negatively affect sales and profitability.
- Best Buy Co Inc (BBY) recorded a $475 million goodwill impairment related to Best Buy Health, reflecting downward revisions in longer-term projections.
- The company expects its first quarter comparable sales to be slightly down versus last year, with a 40 basis point decline in adjusted operating income rate.
