Best Buy Sees Weak Q4 Comps, Cuts FY24 Outlook; Stock Down In Premarket- Update

(RTTNews) - Eelectronics retailer Best Buy Co Inc. (BBY), while reporting weak earnings and revenues in its third quarter, on Tuesday said it expects weak comparable sales in its fourth quarter.

The company also lowered its fiscal 2024 forecast citing the sales trends in the quarter and so far in November.

In its pre-market activity on the NYSE, Best Buy shares were losing around 4.4 percent to trade at $65.11.

Looking ahead for the fourth quarter, Best Buy expects comparable sales to decline in the range of 3 percent to 7 percent. On the profitability side, adjusted operating income rate is expected to be in a range of 4.7 percent to 5.0 percent, which compares to a rate of 4.8 percent last year.

Further, for fiscal 2024, the company now expects adjusted earnings per share in the range of $6.00 to $6.30, compared to prior guidance of $6.00 to $6.40.

Revenue is now expected to be $43.1 billion to $43.7 billion, which compares to prior guidance of $43.8 billion to $44.5 billion.

Analysts on average expect the company to earn $6.20 per share on revenues of $44.16 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

For the year, comparable sales are now expected to decline 6.0 percent to 7.5 percent, while previous outlook was a decline of 4.5 percent to 6.0 percent.

The company noted that the 53rd week in the year is expected to add around $700 million of revenue to the fourth quarter.

In its third quarter, Best Buy's earnings decreased from last year but beat the Street estimates.

The company's earnings came in at $263 million or $1.21 per share, compared to $277 million, or $1.22 per share, in last year's third quarter.

Adjusted earnings were $1.29 per share for the period. Analysts had expected the company to earn $1.18 per share.

The company's revenue for the quarter fell 7.8 percent to $9.76 billion from $10.59 billion last year.

The company said it reported better-than-expected profitability in the quarter on slightly softer-than-expected revenue.

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