NYSE$BBY

Best Buy Co Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Best Buy's Q2 2024 results were announced, featuring sales at the high end of expectations and profitability exceeding forecasts.

Best Buy reported Q2 FY24 results with revenue of $9.583 billion and GAAP diluted EPS of $1.25. The company's sales were at the high end of its outlook, and profitability was better than expected, demonstrating strong operational execution amidst industry sales pressure.

  • Second quarter sales results were at the high-end of the outlook shared in May.
  • Profitability was better than expectations.
  • The consumer electronics industry remains challenged due to the pull-forward of demand in prior years and macroeconomic factors.
  • The company expects this year will be the low point in tech demand after two years of sales declines.

Headline financials

Total Revenue

$9.58B

Previous: $10.3B-7.2%
EPS (adj)

$1.22

Previous: $1.54-20.8%
Domestic comparable sales

-6.3%

Previous: -12.7%+50.4%
International comparable sales

-5.4%

Previous: -4.2%-28.6%
Capital Expenditures

-$395M

Previous: -$441M+10.4%
Free Cash Flow

-$121M

Previous: -$135M+10.4%
Net Income

$274M

Previous: $306M-10.5%
Operating Income

$348M

Previous: $371M-6.2%
Gross Profit

$2.22B

Previous: $2.29B-2.9%
Cash & Equivalents

$1.09B

Previous: $840M+30.1%
Total Assets

$15.3B

Previous: $15.4B-0.7%
Stock-Based Comp

$37M

Previous: $26M+42.3%

Revenue & EPS history

Best Buy · Revenue · Quarterly

$9.58B

Q2 2024-7.2%vs Q2 2023
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Best Buy · $9.58B total across 2 segments · Q2 2024

  • Domestic segment
    $8.89B-7.1%
  • International segment
    $693M-8.8%

Forward guidance

Best Buy provided financial guidance for FY24, including revenue, comparable sales decline, non-GAAP operating income rate, non-GAAP effective income tax rate, non-GAAP diluted EPS, and capital expenditures.

Tailwinds

  • Revenue of $43.8 billion to $44.5 billion
  • Comparable sales decline of 4.5% to 6.0%
  • Enterprise non-GAAP operating income rate of 3.9% to 4.1%
  • Non-GAAP effective income tax rate of approximately 24.5%
  • Non-GAAP diluted EPS of $6.00 to $6.40

Headwinds

  • Comparable sales are expected to be slightly better than the negative 6.2% reported for Q2.
  • The high-end of the full-year revenue outlook was lowered to the previous midpoint.
  • Consumer electronics industry remains challenged.
  • The company expects this year will be the low point in tech demand after two years of sales declines.
  • Macroeconomic factors are still impacting the industry.

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 2024

Historical avgQ2 2024

+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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