HALISTER: Best Buy Drops 5.7%; 2Q Adj. EPS View Trails Est.

Best Buy Drops 5.7%; 2Q Adj. EPS View Trails Est.

(Bloomberg) -- Best Buy sees 2Q adj. EPS 38c-42c, est. 50c (range 42c-54c); hurt by expected 3c negative impact from lapping of periodic profit sharing benefit, ~6c negative impact from carryover of last Sept.’s services pricing investment.
  • Also includes 3c-4c negative impact from Japan earthquake in digital imaging
  • Sees 2Q rev. $8.35b-$8.45b, est. $8.31b (range $8.16b- $8.44b)
  • Sees 2Q enterprise comps. “about flat”
  • Expects “slight declines” in revenue in 1H of year followed by growth in back half
  • 1Q adj EPS 44c, 31c-35c (Feb. 25). est. 35c (range 30c-37c)
  • 1Q rev. $8.44b, saw $8.25b-$8.35b, est. $8.29b (range $8.13b-$8.39b)
  • 1Q enterprise comp. sales (incl. installment billing) -0.1%, saw down 1%-2%, est. -1.6% (Consensus Metrix avg of 14 ests.)
    • 1Q domestic comp. -0.1%, est. -1.5%
  • 1Q gross margin 25.4% vs est. 22.8%
  • Still targets “approximately flat” year rev., non-GAAP operating income, with non-GAAP EPS growth driven by share repurchases
  • Has no new material information as it relates to product launches throughout the year
  • Chief Administrative Officer/CFO Sharon McCollam stepping down June 14
    • Corie Barry, current chief strategic growth officer, will become CFO; Asheesh Saksena to succeed Barry
  • Call 8am, 800-327-5138 pw 4553353
  • See PREVIEW BEST BUY 1Q: CE Challenged Amid Lack of New Products
Statement NSN O7OH80MEQTXU
Alert: HALISTER
Source: BFW (Bloomberg First Word)

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BBY US (Best Buy Co Inc)

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Sharon McCollam (Best Buy Co Inc)

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