Overview

• US electronics retailer's Q1 revenue and adjusted EPS beat analyst expectations

• Comparable sales rose 2.0% yr/yr, led by gaming, computing, and mobile phones

• Company reiterated FY27 adjusted EPS guidance and announced CEO transition for later this year

Outlook

• Best Buy reiterates FY27 revenue guidance of $41.2 bln to $42.1 bln

• Company expects FY27 adjusted diluted EPS of $6.30 to $6.60

• Best Buy sees Q2 comparable sales growth of about 1.0%

Result Drivers

• CATEGORY PERFORMANCE - Growth in gaming, computing, mobile phones, and services drove comparable sales gains, partially offset by a decline in appliances

• NEW PROFIT STREAMS - Marketplace and Best Buy Ads contributed to higher gross profit rates, though gains were offset by lower product margin rates

• INTERNATIONAL GROWTH - International revenue increased due to comparable sales growth and favorable foreign exchange rates

Company press release: ID:nBw9FzjSfa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$8.94 bln	$8.83 bln (19 Analysts)
Q1 Adjusted EPS	Beat	$1.28	$1.23 (20 Analysts)
Q1 EPS		$1.31
Q1 Net Income		$276 mln
Q1 Gross Profit		$2.10 bln
Q1 Operating income		$370 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 18 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the computer & electronics retailers peer group is "buy."

• Wall Street's median 12-month price target for Best Buy Co Inc is $70.00, about 8.5% above its May 27 closing price of $64.54

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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