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Best Buy Co., Inc. Message Board

  • reitdude42 reitdude42 Mar 11, 2013 5:16 PM Flag

    Super Bowl revenue into 4Q? So what....

    ...it's called seasonality. Easter sales will push into the first week of April 2013 from the last week of March 2012, impacting 1Q numbers for all retailers.

    But guess what? Consensus expectations are adjusted accordingly.

    In the case of BBY, 1Q estimates went from $0.46 to....wait for it....$0.25.

    Down $0.20. How's that for managing investor expectations? Genius. A much easier hurdle to overcome.

    Said differently...with the cost savings in place, increased sales volumes from price-matching initiatives and marginal impacts to margins, BBY will be able to beat these lowered 1Q expectations easily.

    Moreover, if we get some announcement related to the divestiture of their foreign business units that contributed to the -6.6% decline in same-store sales...this stock will pop even higher.

    Or...an announcement related to the national implementation of the Marketplace Fairness Act....

    Or...more cost-savings....

    Or...more U.S. store closures....

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    • Easter sales?? lol. Another indicator of your lack of understanding of electronics big events. Best Buy had guidance of making $3.50 eps in 2012 and they lose .73eps. You come back and talk about analysts estimates being met after they were adjusted downward for last 6mos. Then you compare Easter to SB week?? Too funny.Company has already stated "pressure" in Q1 from losing SB week and you propagandize with nonsense. "Fair-Marketplace Act" already in effect in Texas and they still can't compete with most goods online; Even their own website.

      "Reduction" of sq. ft. is in their own press releases. When are you going to get it? IT'S DEAD.
      You poor, poor kool-aid drinker. You will learn the hard way! ; )

      • 1 Reply to hollyannatexas
      • I was giving you an example on how seasonality works, genius.

        Super Bowl sales impact electronics retailers such as BBY much like Easter effects sales for all other retailers.

        It seems that you don't understand how the market works. You see...its a forward discounting mechanism. BBY's EPS did fall from $3.08 in FY11 to $1.64 in FY13...THIS explains the drop in price from the low $30 range to sub $12.

        But you're focusing on the past. Going forward, BBY EPS is expected to grow:

        * from $1.64 in FY13
        * to $2.13 in FY14
        * to $2.27 in FY15

        THAT explains the rise in the stock price now! The stock is up almost 80% since its December lows!

        80%!

        Why can't you see it? You're yapping endlessly about a "dead business model" while BBY is expected to grow earnings.

        BB&T sees it, so does Stifel Nichols and Barclays AND Piper Jaffery!!

        So what if 1Q is weak? Consensus has already adjusted for the "pressure", as you call it. BBY will beat the lowered expectations with their cost-cutting and price-matching initiatives.

        Its called the Marketplace Fairness Act. And if you don't recall...the most recent states that adopted the tax collection policy in Fall 2012, CA, TX and PA, Best Buy saw their sales increase between 4-6%.

        4-6% increase in sales...without price-matching! Now that's a catalyst!

 
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