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Jan 29, 2022
Best Buy Q4 2022 Earnings Report
Best Buy's Q4 earnings were impacted by constrained inventory and strategic investments.
Key Takeaways
Best Buy reported Q4 revenue of $16.37 billion, a decrease of 3.4% year-over-year, and GAAP diluted EPS of $2.62. The company's performance was affected by constrained inventory and investments in future growth. While Q4 sales were impacted, FY22 was a record year for revenue and earnings.
Q4 comparable sales decreased 2.3% compared to 12.6% growth in Q4 FY21.
Q4 GAAP diluted EPS was $2.62.
Q4 Non-GAAP diluted EPS was $2.73.
The quarterly dividend was increased by 26% to $0.88 per share.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Best Buy anticipates sales growth and earnings to vary in FY23 due to short-term industry decline and investments in their new membership program. However, they expect strong revenue growth and operating income rate expansion beyond FY22 by FY25.
Positive Outlook
- Leveraging position of strength to invest in future growth.
- Expects consumer electronics industry to return to higher levels than pre-pandemic.
- Totaltech, Best Buy Health, and other initiatives will drive meaningful growth.
- Share repurchases of approximately $1.5 billion
- Increased Quarterly Dividend 26% to $0.88 per Share
Challenges Ahead
- Short-term industry decline as company laps high growth and government stimulus.
- Investment in new membership program, Best Buy Totaltech, impacting short-term financials.
- Comparable sales decline of 1.0% to 4.0%
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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