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Oct 28, 2023
Best Buy Q3 2024 Earnings Report
Best Buy reported better-than-expected profitability but slightly softer-than-expected revenue for Q3 2024.
Key Takeaways
Best Buy's Q3 2024 results revealed better-than-expected profitability despite a slight revenue decrease. The company's strong operational execution helped navigate near-term sales pressures. Due to uneven consumer demand, Best Buy lowered its annual revenue outlook, but the non-GAAP diluted EPS guidance midpoint is slightly higher than initial expectations.
Q3 FY24 revenue was $9.756 billion, compared to $10.587 billion in Q3 FY23.
GAAP diluted EPS was $1.21, while non-GAAP diluted EPS was $1.29.
Domestic revenue decreased by 8.2% year-over-year, driven by a comparable sales decline of 7.3%.
The company returned $313 million to shareholders through dividends and share repurchases.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the fourth quarter, Best Buy expects comparable sales to decline between 3.0% and 7.0%. The non-GAAP operating income rate is expected to be in the range of 4.7% to 5.0%, compared to 4.8% last year.
Positive Outlook
- The midpoint of annual non-GAAP diluted EPS guidance is slightly higher than the midpoint of the original guidance.
- Prepared for a deal-focused customer with promotions and deals for all budgets.
- New shopping experiences are being introduced.
- Expanded product assortment is available.
- Fast and free fulfillment options are offered.
Challenges Ahead
- Consumer demand has been uneven and difficult to predict.
- Annual revenue outlook has been lowered.
- Comparable sales are expected to decline in the range of 3.0% to 7.0% for Q4.
- Macro environment creates near-term sales pressure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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