LONDON, UK / ACCESSWIRE / August 29, 2016 / Active Wall St. announces its post-earnings coverage on Best Buy Co., Inc. (NYSE: BBY). The company announced its second quarter fiscal 2017 (Q2 FY17) earnings on August 23rd, 2016. The Richfield, Minnesota-based company reported a 0.8% y-o-y growth in its comparable store sales and 23.7% y-o-y growth in its comparable online sales. Register with us now for your free membership at: http://www.activewallst.com/register/.

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Earnings Review

During the reported quarter, Best Buy reported relatively flat revenue of $8.53 billion compared to prior-year period. However, it outperformed the market expectation of $8.39 billion. The company's non-GAAP diluted EPS from continuing operations improved 16% y-o-y to $0.57 in Q2 FY17 from $0.49 in the corresponding period of fiscal 2016. Additionally, its GAAP diluted earnings from continuing operations also improved 22% y-o-y to $0.56 per share, from $0.46 per share, in the year ago period.

"Our teams delivered a strong second quarter, with better-than-expected revenue and profitability in both our Domestic and International businesses," said Best Buy Chairman and CEO Hubert Joly.

Market-Wise

Best Buy's Domestic revenue registered a nominal growth of 0.1% on y-o-y basis to $7.89 billion versus last year, primarily driven by comparable sales growth of 0.8% which was partially offset by the loss of revenue from 12 large format and 22 Best Buy Mobile store closures.

Additionally, the company's International revenue declined 1.0% y-o-y to $644 million in the reported quarter driven by a negative foreign currency impact of approximately 510 basis points. However, on constant currency basis, International revenue grew 4.1% on y-o-y basis driven by growth in both Canada and Mexico.

For Q2 FY17, the consumer electronics retailer's Domestic gross profit rate was down to 24.0% from 24.7% in the year ago quarter. Meanwhile, its International segment's gross profit rate improved to 25.9% in the reported quarter from 23.4% last year. For three months ended on July 30, 2016, Best Buy's Domestic SG&A expenses were $1.61 billion, or 20.4% of revenue, versus $1.64 billion, or 20.8% of revenue, in the corresponding last year period. Moreover, the company's International SG&A expenses came in at $165 million, or 25.6% of revenue, compared to $175 million, or 26.9% of revenue, in the year ago quarter.

As of the quarter ended on July 30, 2016, Best Buy had cash and cash equivalents of $1.86 billion compared to $1.80 billion on August 01, 2015. Furthermore, the company had long-term debt of $1.34 billion from $1.22 billion as of August 1, 2015.

Share Repurchases and Dividends

In-line with the announcement made on February 25, 2016, for the intent to repurchase $1 billion of its shares over a two-year period, Best Buy bought 7.1 million shares for a total of $219 million during the reported quarter. The company has repurchased 10.3 million shares for a total of $316 million till date in fiscal year 2017.

On July 5, 2016, Best Buy paid a quarterly dividend of $0.28 per common share outstanding, or $90 million. The company also informed that it has paid $325 million till date in from of regular and special dividends during the current fiscal year.

Earnings Outlook

For the upcoming quarter, the company expects Enterprise revenue to gown 1% y-o-y and to be in the range of $8.8 billion to $8.9 billion. The company's management anticipates Enterprise and Domestic comparable sales to tickle up by 1% y-o-y. Best Buy is also forecasting non-GAAP diluted EPS to be in the range of $0.43 to $0.47.

Stock Performance

Best Buy's shares closed marginally lower by 0.08%, to end the trading session at $39.48 on August 26, 2016. The stock recorded a total volume of 5.51 million shares. In the last one month and the previous three months, the company's share price has gained 18.36% and 24.42%, respectively. Moreover, since the start of the year, shares of Best Buy have advanced 33.79%. Currently, the stock traded at a P/E ratio of 13.07.

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SOURCE: Active Wall Street