Best Buy (NYSE:BBY) has been sliding in early trading after setting guidance below expectations. Earnings themselves for Best Buy were decent, but it is the guidance which is the sticking point.
In the third quarter, Best Buy delivered strong top and bottom line results with 4.4% comparable sales growth and 30% EPS growth. Revenues missed expectations while earnings were as expected.
Now, guidance was lifted, but still disappointed. Best Buy raised full year revenue growth outlook to 4.0% to 4.8% versus theprevious outlook of approximately 4.0% and raised its non-GAAP operating income growth outlook to 7.0% to 9.5% versus our previous outlook of 4.0% to 9.0%
As such, the retailer sees Q4 revenue of $14.2B to $14.5B vs. $14.36B consensus and EPS of $1.89 to $1.99 vs. $2.03 consensus
In Q3, Best Buy reported a 4.5% increase in U.S. comparable sales vs. +5.3% expected. International comparable sales increased 3.8% vs. 2.4% consensus. The company saw strong demand for appliances during the quarter, but said revenue in the mobile category fell short of expectations. Best Buy also cited a negative impact from the U.S. hurricanes on EPS of about $0.03.