Best Buy Shares Jump 6% After Earnings Beat Despite Soft Revenue and Guidance

Core Insights - Best Buy Co., Inc. reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share at $2.61, surpassing the consensus estimate of $2.47 by $0.14 [1] - The company's revenue totaled $13.81 billion, slightly below the forecast of $13.91 billion and down 1% from $13.95 billion in the prior-year quarter, with comparable sales declining by 0.8% [1] Fiscal 2027 Guidance - For fiscal 2027, Best Buy guided adjusted EPS between $6.30 and $6.60, with a midpoint of $6.45, which is below the consensus estimate of $6.65 [2] - Revenue is expected to range from $41.2 billion to $42.1 billion, with a midpoint of $41.65 billion, also below the consensus of $42.2 billion [2] - The company projected approximately 1% comparable sales growth for the first quarter and an adjusted operating income rate of roughly 3.9% [2] Domestic Segment Performance - The domestic segment generated revenue of $12.58 billion, down 1.1% year over year, with declines in home theater and appliances partially offset by growth in computing and mobile phones [3] - The domestic gross profit rate remained steady at 20.9%, as expansion in Best Buy Ads and Marketplace helped offset lower product margins [3] Fiscal 2026 Performance - For fiscal 2026, Best Buy returned to positive comparable sales growth of 0.5% and expanded its operating income rate [4] - The board approved a 1% increase in the dividend to $0.96 per share, payable on April 14, 2026 [4]