NYSE$BBY

Best Buy Co Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Best Buy reported better-than-expected results in the second quarter, with enterprise comparable sales increasing by 20%.

Best Buy's Q2 FY22 results exceeded expectations, with significant growth in comparable sales and operating income. The company raised its full-year enterprise comparable sales growth outlook to a range of 9% to 11% due to strong customer demand and effective execution by its teams.

  • Enterprise comparable sales increased by 19.6% compared to the previous year.
  • GAAP diluted EPS increased 76% to $2.90, and non-GAAP diluted EPS increased 74% to $2.98.
  • The company is raising its full-year enterprise comparable sales growth outlook to a range of 9% to 11%.
  • Customer demand for technology products and services remained strong, bolstered by consumer spending ability.

Headline financials

Total Revenue

$11.8B

Previous: $9.91B+19.6%
EPS (adj)

$2.98

Previous: $1.71+74.3%
Domestic comparable sales

20.8%

Previous: 5.0%+316.0%
International comparable sales

5.0%

Previous: 15.1%-66.9%
Capital Expenditures

$162M

Previous: -$340M+147.6%
Free Cash Flow

$597M

Previous: $92M+548.9%
Net Income

$734M

Previous: $432M+69.9%
Operating Income

$797M

Previous: $568M+40.3%
Gross Profit

$2.81B

Previous: $2.27B+23.8%
Cash & Equivalents

$4.34B

Previous: $5.31B-18.2%
Total Assets

$18.6B

Previous: $17.4B+6.7%
Stock-Based Comp

$34M

Previous: $50M-32.0%

Revenue & EPS history

Best Buy · Revenue · Quarterly

$11.8B

Q2 2022+19.6%vs Q2 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Best Buy · $11.8B total across 2 segments · Q2 2022

  • Domestic segment
    $11B+20.6%
  • International segment
    $838M+7.2%

Forward guidance

Best Buy is raising its outlook for the year based on the strength of the business and expectations for continued customer demand. For the second half of FY22, the company expects comparable sales to be in the range of flat to down 3% versus last year.

Tailwinds

  • Enterprise revenue of $51.0 billion to $52.0 billion
  • Enterprise comparable sales growth of 9% to 11% compared to the prior outlook of 3% to 6% growth
  • Enterprise non-GAAP gross profit rate slightly higher than last year compared to the prior outlook of approximately flat to last year
  • Enterprise non-GAAP SG&A growth of approximately 9% compared to the prior outlook of 6% to 7% growth
  • Share repurchases of more than $2.5 billion compared to the prior outlook of approximately $2.5 billion

Headwinds

  • Enterprise revenue of $11.4 billion to $11.6 billion for Q3 FY22
  • Enterprise comparable sales decline of -1% to -3% for Q3 FY22
  • Enterprise non-GAAP gross profit rate decline of approximately 30 basis points for Q3 FY22
  • Enterprise non-GAAP SG&A dollars approximately flat to last year for Q3 FY22
  • Non-GAAP effective income tax rate of approximately 25.0% for Q3 FY22

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.8%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+0.1%

Avg return

30 days after

51%

36 / 71 earnings

Positive

+20.4%

Q2 2016

Best reaction

-16.8%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+13.3%+8.3%+4.7%
Q3 2026+4.4%+4.8%-7.8%
Q2 2026-3.8%-1.3%+0.9%
Q1 2026-7.1%-2.3%-4.6%
Q4 2025-13.3%-8.5%-28.3%
Q3 2025-5.2%-3.3%-3.9%
Q2 2025+14.4%+15.0%+16.5%
Q1 2025+18.0%+22.2%+17.2%
Q4 2024-2.2%-4.7%+2.9%
Q3 2024-0.1%+2.1%+11.3%
Q2 2024+2.5%+1.6%-7.0%
Q1 2024+7.5%+6.1%+14.4%
Q4 2023+0.9%-0.3%-5.2%
Q3 2023+16.3%+14.7%+13.6%
Q2 2023-4.1%-3.5%-11.7%
Q1 2023+10.3%+15.7%-1.8%
Q4 2022+5.2%+0.3%-10.4%
Q2 2022+8.7%+4.8%-5.3%
Q1 2022-0.6%-1.8%-3.3%
Q4 2021-11.6%-9.6%+5.1%
Q3 2021-6.7%-7.7%-16.0%
Q2 2021-4.3%-5.2%-10.7%
Q1 2021-5.7%-2.5%-0.4%
Q4 2020-7.9%-6.9%-24.0%
Q3 2020+8.7%+8.6%+18.3%
Q2 2020-7.8%-8.4%-1.1%
Q1 2020-4.7%-5.5%-2.4%
Q4 2019+14.1%+11.2%+17.8%
Q3 2019-0.2%+0.6%-19.0%
Q2 2019-4.9%-2.6%-4.2%
Q1 2019-9.9%-10.2%+0.4%
Q4 2018+0.8%+6.0%-3.4%
Q3 2018-2.6%-2.2%+14.0%
Q2 2018-13.3%-12.8%-9.0%
Q1 2018+17.0%+17.6%+9.4%
Q4 2017+1.6%-0.5%+11.4%
Q3 2017+10.7%+15.2%+16.2%
Q2 2017+20.4%+20.4%+17.3%
Q1 2017-2.8%-2.9%-7.8%
Q4 2016+3.1%
Q3 2016-2.6%
Q2 2016+20.4%
Q1 2016+1.6%
Q4 2015+3.0%
Q3 2015+7.0%
Q2 2015-0.9%
Q1 2015+6.5%
Q4 2014-3.1%
Q3 2014-11.1%
Q2 2014+9.8%
Q1 2014-4.3%
Q4 2013+8.3%
Q3 2013-15.9%
Q2 2013-2.4%
Q1 2013+2.2%
Q4 2012-11.0%
Q3 2012-16.8%
Q2 2012-3.8%
Q1 2012+5.5%
Q4 2011+1.9%
Q3 2011+0.6%
Q2 2011+0.7%
Q1 2010-0.2%
Q1 2011-3.6%
Q4 2010+2.6%
Q4 2008+2.6%
Q3 2010-2.4%
Q3 2009-2.4%
Q2 2010+0.9%
Q2 2009+0.9%
Q4 2009+0.9%

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