Consumer electronics retailer Best Buy (NYSE:BBY) dropped in pre-market trading after lowering its FY24 guidance. The company now expects FY24 revenues to be in the range of $43.1 billion to $43.7 billion, compared to its prior guidance of between $43.8 billion and $44.5 billion. Furthermore, Best Buy has forecast its comparable sales to decline by 6% to 7.5%.
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Adjusted diluted earnings are projected to land between $6.00 and $6.30 per share compared to the previous forecast of $6.00 to $6.40 per share.
Corie Barry, Best Buy’s CEO, attributed the lowered outlook to the current macroeconomic environment, which has made predicting consumer demand more difficult.
In the third quarter, the retailer posted revenues of $9.76 billion, a decline of 7.8% year-over-year, and fell short of analysts’ expectations of $9.9 billion. Best Buy’s comparable sales fell by 6.9% in the third quarter.
In addition, the company’s adjusted diluted earnings dropped to $1.29 per share versus earnings of $1.38 per share in the same period last year. However, they were above consensus estimates of $1.19 per share.
Moreover, Best Buy announced a quarterly cash dividend of $0.92 per common share, payable on January 2, 2024, to shareholders of record on December 12.
What is the Future of BBY Stock?
Analysts remain sidelined about BBY stock with a Hold consensus rating based on four Buys, 11 Holds, and two Sells. BBY stock has fallen by more than 10% year-to-date, but the average BBY price target of $78.27 per share implies an upside potential of 14.9% at current levels.
