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Best Buy Reports Strong Q3 Results
On November 25, 2023, Best Buy (NYSE: BBY) announced its Q3 earnings for the period ending November 1, reporting sales of $9.67 billion, exceeding analyst expectations of $9.59 billion. The company’s adjusted earnings per share (EPS) also topped forecasts at $1.40, compared to an expected $1.31. Following these results, Best Buy upgraded its guidance for the fiscal year, projecting revenues between $41.65 billion and $41.95 billion, up from the previous estimate of $41.1 billion to $41.9 billion.
Renewed Consumer Demand for Tech Upgrades
Best Buy’s management indicated a renewed willingness among consumers to invest in technology upgrades, driven by innovative features, especially in artificial intelligence. CFO Matthew Bilunas highlighted that many customers are still using older Microsoft computers, suggesting ongoing demand for replacements as Microsoft discontinued support for Windows 10 on October 14. This trend has positive implications for Best Buy and related tech retailers.
Adjusted Financial Guidance
For the full fiscal year ending in January, Best Buy has increased its guidance for comparable sales growth to 0.5% to 1.2%, up from a previous forecast of -1% to 1%. Adjusted diluted EPS is now expected to be between $6.25 and $6.35, raised from $6.15 to $6.30. This revised outlook reflects potential growth linked to a fresh consumer tech upgrade cycle.
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