Best Buy Beats Q4 Earnings Forecast, Sees Solid 2021 Profit

Best Buy said the coronavirus impact a "fluid situation", but forecast solid 2021 profts following a stronger-than-expected fourth quarter.
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Best Buy Co.  (BBY) - Get Report posted stronger-than-expected fourth quarter earnings Thursday and forecast solid profits for its coming fiscal year even as it said it was closely monitoring the potential impact of the coronavirus.

Best Buy said non-GAAP earnings for the three months ending on February 1 were pegged at $2.90 per share, up 6.6% from the same period last year and firmly ahead of the Street consensus forecast of $2.75. Group enterprise revenue, Best Buy said, rose 2.7% to $15.2 billion, a figure that beat analysts' forecasts of a $15.05 billion tally. Same store sales were 3.2% higher from last year, the electronics retailer said, compared to the Refinitiv forecast of a 1.9% advance. 

Looking into the 2021 fiscal year, Best Buy said it sees non-GAAP earnings in the region of $6.10 to $6.30 per share and revenues of between $43.3 billion and $44.3 billion, both of which reflect the company's best estimates of the coronavirus impact.

“e are closely monitoring the developments related to the coronavirus outbreak. This is a very fluid situation, which makes it difficult to determine exact financial impacts from disruptions in supply chain," said CFO Matt Bilunas. "Based on what we know today, we have assumed the majority of the impacts occur in the first half of the year. Therefore, we view this as a relatively short-term disruption that does not impact our long-term strategy and initiatives." 

"Our guidance ranges for both Q1 and the full year reflect our best estimates of the impacts at this time,” he added. 

Best Buy shares were marked 0.58% lower in pre-market trading immediately following the earnings release, against a 1.44$ decline for the S&P 500, to indicate an opening bell price of $81.70.