Best Buy (BBY)

HenryTo · Posted: Tue Sep 12, 2006 6:23 am Post subject: Best Buy (BBY)

Consensus estimates for fiscal 2007 is actually $2.80 - while BBY guides to a range of $2.65 to $2.80. Stock down a little bit this morning:
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Best Buy profit rises, backs year forecast

Last Update: 8:08 AM ET Sep 12, 2006

NEW YORK (MarketWatch) - Best Buy Inc. on Tuesday reported higher fiscal second quarter profit, helped by recent acquisitions and higher average transactions. The Minneapolis-based electronics retailer said it earned $230 million, or 47 cents a share, compared to $188 million, or 37 cents a share. Total revenue for the second quarter rose 13% to $7.6 billion. Analysts, on average, expected it to earn 44 cents a share on revenue of $7.54 billion, according to Thomson First Call. Sales at stores open at least one year rose 3.7%. The company backed its fiscal 2007 earnings forecast of $2.65 to $2.80 a share.

nodoodahs · Moderator Joined: 06 May 2005 Posts: 2408

Technically, is today's low the bottom? Hello, Chartist?
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HenryTo · Posted: Tue Jun 19, 2007 10:21 am Post subject:

Best Buy misses by a whooping 10 cents a share. Looks like their newly-revised fiscal year forecast is still too optimistic, assuming no rebound in high margin sales going forward:

http://www.marketwatch.com/news/story/best-buy-profit-off-18/story.aspx?guid=%7BFCF7047D%2DA5B0%2D46C8%2D8B67%2DD395948CC5DA%7D&siteid=yhoof

rffrydr · Posted: Tue Dec 12, 2006 8:43 am Post subject:

There's the flipside to those big sales numbers: all that inventory clearing in electronics.

Margins nowhere to go but up????
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HenryTo · Posted: Tue Dec 12, 2006 7:57 am Post subject:

Best Buy misses. Consumer discretionary continues to correct here:

http://www.thestreet.com/_yahoo/newsanalysis/retail/10327339.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

HenryTo · Posted: Wed Sep 13, 2006 8:03 am Post subject:

I think many folks in general think the average American consumers are just know-nothing, idiotic, spendthrifts. This may have been 20 years ago relative to the informed but today, every American is reading the same thing and watching the same thing on Marketwatch.com and the WSJ. Many of these views (such as using the house as an ATM, possibility of $100 oil, etc.) have gone very mainstream, and as a stock market analyst, you have to take that into account.

TRS · Veteran Poster Joined: 11 Aug 2005 Posts: 188

It's incredibly hard to gage the consumer. BBY really did not help with alot of information. CC reports on Wednesday. Maybe they will provide more insight.

But for now it's all blue skies ahead.

HenryTo · Posted: Tue Sep 12, 2006 7:11 am Post subject:

Flat panel TVs continue to be the drive of growth - up triple digits for the 9th consecutive quarter? What can be their next high-margin product? PS3? Huge delay on that. Or Blu-Ray Disc? Still waiting for a standard to come along. iPod? No, that has already been too hot for too long.

Just for the record, I wouldn't mind buying a flat panel at Wal-Mart.

TRS · Veteran Poster Joined: 11 Aug 2005 Posts: 188

They have not guided higher, even though they beat eps two quarters in row. Either they are playing it ultra conservative or they see slowing ahead or margin's being pressured by Walmart essentially selling the same HD TV's now.