FBR Capital Maintains a 'Market Perform' on Best Buy (BBY); Adjusting Estimates Down
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Price: $74.43 -0.81%
Rating Summary:
11 Buy, 19 Hold, 5 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
11 Buy, 19 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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FBR Capital maintains a 'Market Perform' on Best Buy (NYSE: BBY), PT $34.
FBR analyst says, "Consumer electronics retailer Best Buy (NYSE: BBY)(Market Perform) is experiencing reductions in sales per sq. ft. from sales pressure in key categories: TVs, notebook/PCs, and entertainment software. The company is selling some higher gross margin categories, such as mobile phones and services; but sales of these items are not enough to absorb sales-per-sq.-ft. declines and related SG&A de-leverage (4Q domestic sales per sq. ft. declined –6.3%; EBIT/sq. ft. contracted –8.2% YOY). BBY also operates the highest sales-per-sq.-ft stores in our group ($863 per domestic sq. ft., LTM, compared with the $352 average for our big box hardline retail group). There is further erosion potential in this metric, accordingly."
"On the heels of the 4Q11A report, we adjust our FY 2012E EPS estimate to $3.20 from $3.38, and this compares with management's guidance of $3.30–$3.55 (ex. charges), and the Street consensus of $3.56 (prior to the company's earnings call). For 2013, we adjust our estimate to $3.33 from $3.66, and this compares with the Street estimate of $3.79."
For more ratings news on Best Buy click here and for the rating history of Best Buy click here.
Shares of Best Buy closed at $30.13 yesterday.
FBR analyst says, "Consumer electronics retailer Best Buy (NYSE: BBY)(Market Perform) is experiencing reductions in sales per sq. ft. from sales pressure in key categories: TVs, notebook/PCs, and entertainment software. The company is selling some higher gross margin categories, such as mobile phones and services; but sales of these items are not enough to absorb sales-per-sq.-ft. declines and related SG&A de-leverage (4Q domestic sales per sq. ft. declined –6.3%; EBIT/sq. ft. contracted –8.2% YOY). BBY also operates the highest sales-per-sq.-ft stores in our group ($863 per domestic sq. ft., LTM, compared with the $352 average for our big box hardline retail group). There is further erosion potential in this metric, accordingly."
"On the heels of the 4Q11A report, we adjust our FY 2012E EPS estimate to $3.20 from $3.38, and this compares with management's guidance of $3.30–$3.55 (ex. charges), and the Street consensus of $3.56 (prior to the company's earnings call). For 2013, we adjust our estimate to $3.33 from $3.66, and this compares with the Street estimate of $3.79."
For more ratings news on Best Buy click here and for the rating history of Best Buy click here.
Shares of Best Buy closed at $30.13 yesterday.
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