Best Buy (NYSE:BBY) Releases FY 2027 Earnings Guidance

Best Buy (NYSE:BBY) updated its FY 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 6.700-6.900 for the period, compared to the consensus earnings per share estimate of 6.590. The company issued revenue guidance of $42.3 billion-$42.8 billion, compared to the consensus revenue estimate of $42.1 billion.

Best Buy Price Performance

BBY opened at $82.34 on Friday. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.12 and a quick ratio of 0.40. Best Buy has a 1 year low of $55.10 and a 1 year high of $91.26. The stock’s 50 day simple moving average is $83.16 and its 200 day simple moving average is $71.34. The firm has a market cap of $17.35 billion, a price-to-earnings ratio of 13.70, a PEG ratio of 2.36 and a beta of 1.29.

Best Buy (NYSE:BBY) last issued its earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping the consensus estimate of $1.39 by $0.08. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The company had revenue of $9.78 billion for the quarter, compared to the consensus estimate of $9.59 billion. During the same period in the previous year, the firm earned $1.28 earnings per share. The firm’s revenue for the quarter was up 3.6% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, analysts predict that Best Buy will post 6.7 earnings per share for the current year.

Best Buy Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Thursday, September 17th will be given a $0.96 dividend. This represents a $3.84 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date of this dividend is Thursday, September 17th. Best Buy’s payout ratio is 71.11%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on BBY shares. Piper Sandler raised their target price on Best Buy from $77.00 to $85.00 and gave the stock a “neutral” rating in a report on Thursday, August 20th. KeyCorp reaffirmed a “sector weight” rating on shares of Best Buy in a research note on Monday, June 22nd. Barclays boosted their price objective on Best Buy from $77.00 to $85.00 and gave the company a “buy” rating in a research note on Friday. Truist Financial set a $100.00 price objective on shares of Best Buy in a research report on Thursday. Finally, Weiss Ratings upgraded Best Buy from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 29th. Seven investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $85.40.

Insider Buying and Selling at Best Buy

In other Best Buy news, Chairman Richard M. Schulze sold 224,705 shares of the business’s stock in a transaction on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the transaction, the chairman owned 10,430,936 shares in the company, valued at $814,656,101.60. The trade was a 2.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Over the last 90 days, insiders sold 500,000 shares of company stock worth $39,065,226. Insiders own 0.50% of the company’s stock.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Quarterly results exceeded expectations. Best Buy reported Q2 FY27 revenue of $9.78 billion, up 3.6% year over year and above the $9.59 billion consensus estimate. Adjusted earnings of $1.47 per share also topped the $1.39 consensus, while comparable sales rose 4.1%. Best Buy Reports Second Quarter Results
• Positive Sentiment: Best Buy raised its full-year outlook. The company now expects adjusted fiscal 2027 earnings of $6.70 to $6.90 per share, up from $6.30 to $6.60 previously, and revenue of $42.3 billion to $42.8 billion. The improved forecast reflects strength in computing and steady demand for technology upgrades and replacements. Best Buy raises annual sales forecast on steady electronics demand
• Positive Sentiment: Analyst sentiment improved. Guggenheim and DA Davidson each raised their BBY price target from $90 to $95 and assigned a “buy” rating, implying roughly 15% upside from the referenced price.
• Positive Sentiment: Shareholder returns remain attractive. Best Buy declared a quarterly dividend of $0.96 per share, equivalent to an annualized yield of approximately 4.7% at the referenced price.
• Neutral Sentiment: Growth initiatives could support the longer-term retail recovery. Best Buy is expanding its omnichannel strategy, including the Ask Blue conversational AI assistant and smaller-format stores, while digital-led sales growth was highlighted during the earnings call. Best Buy Expands Omnichannel Footprint With OpenAI Integration and Smaller-Format Stores
• Negative Sentiment: The negative market reaction likely reflects high expectations and lingering risks. Although results beat estimates, the outlook increase was relatively modest versus consensus, international revenue declined, and investors remain cautious about discretionary spending. Analysts are also described as conflicted on BBY, suggesting uncertainty about how durable the recovery will be. Analysts Conflicted on These Consumer Cyclical Names

Institutional Investors Weigh In On Best Buy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Palisade Asset Management LLC purchased a new position in shares of Best Buy during the third quarter worth approximately $25,000. Atlas Capital Advisors Inc. purchased a new position in shares of Best Buy during the fourth quarter valued at $32,000. CYBER HORNET ETFs LLC purchased a new stake in Best Buy in the second quarter worth about $33,000. MUFG Securities EMEA plc purchased a new stake in shares of Best Buy in the 2nd quarter worth approximately $38,000. Finally, DV Equities LLC acquired a new stake in Best Buy in the fourth quarter worth about $38,000. Institutional investors own 80.96% of the company’s stock.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.