Best Buy Co. Inc. Message Board

You shorts are in fact completely clueless.

BBY adj. 1Q EPS was $0.36, well above consensus expectations of $0.25.

Total revenues including Europe were $10.8B. Consensus was expecting $10.66B.

BBY beat on both metrics. So why on earth would there be downgrades?!?

No wonder you're short!

They didn't "miss" anything. If you run Europe through the statement of earnings like consensus did, instead of including it in discontinued operations as BBY, total revenues would have been $10.8B, above the consensus estimate of $10.66B.

Doubt it. Scroll down BBY's headlines on Yahoo Finance...its all "EPS beat, revenue miss."

Its giving a little ammunition to you misguided shorts.

That'll change soon.

Ha. "Future operations just had same store sales declines of 1.1%..."

Future operations? As in the past quarter?

Astounding analysis.

Nice try, shortie...

You mean these future earnings?

Jan 2013 EPS = $1.64
Jan 2014 EPS (est) = $2.18
Jan 2015 EPS (est) = $2.41

Notice the trend? They're increasing.

And since BBY beat on both revenue (incl. Europe) and EPS. Consensus EPS estimates will be adjusted upward going forward to account for the higher than expected run-rate....

Really? No comments from the peanut gallery?

Just more thorough analyses such as "this POS is going to $22"...

Really? A miracle is required to justify 4.4x EBITDA and 0.18 price/sales?

$3 more than what you made.

Yes...that'll remain a big priority in my life. To seek out a message board poster in two years who has been consistently wrong the past two months.

As delusional as you are thinking that it'll go down to $12.

It's likely...if the company executes a 5-for-1 split by then.

The lot of you have been talking smack since BBY was in the teens back in February.

Let me ask you all a question...do you get tired being wrong week in and week out? ;o)

All right then! Let's get you long so that you can make some real money.

(good luck buddy!)

I believe you, friend.

I would just caution that regardless at what metric that you look at - whether its earnings multiple, price/sales, EBITDA multiple - its still dirt cheap.

I know that you Europeans (I assumed given your spelling mistakes and that you use a comma where a period should be when you write stock prices) enjoy coming into our markets and shorting stocks that have run up in a short period of time but you need to do some fundamental research.

And don't think that they'll miss their earnings estimate this quarter. The expected weakness is already baked into the $0.25 consensus estimate which is down from $0.45 prior to when the sell-siders began upgrading the stock.

Said differently, do you actually think that most of Wall Street would issue a buy rating on a company only to have the company miss earnings three months later? Think again. Wall Street sell-siders are much too conniving to make themselves so bad.

Ha. You still short at $22, champ?

Not much enjoyment for you given where the stock price is...

I went to my local BBY and there were negative 3.6 people there, an iguana and a blind Eskimo named Earl.

Better sell now...I don't like Eskimos.

So:

profit margin x sales doesn't equal profit!?!

Back to school for you...

This idiot has been long since ~$12.

How's that "strong sell" sentiment working out for you, genius?

ha...no wonder you're short...you don't understand how profit is derived.

Let me learn ya something:

margin x sales = profit

Sure, margins may compress but sales volumes will surge given price matching and the implementation of MFA.

Net effect, earnings are growing through FY2015.

I bought mine at Best Buy...they matched the price from AMZN.

Shorts were warned...

vincent,

Are you kidding? This legislation will absolutely matter.

Currently less than 10 states charge sale tax on purchases over the internet. When (not if) this legislation passes, consumers will no longer be able to save between 6-10% (depending on the state) on on-line transactions. That was a huge incentive to people to purchase on the internet.

Why would you buy an expensive piece of CE over the internet from AMZN's bazaar when you can walk or drive 10-15 minutes away to a Best Buy and get the same product at the same price (price matching and the elimination of the unfair tax advantage) that exact day?

Without any doubt, this law will level the playing field between brick & mortars and on-line retailers!

Moreover, despite your vehement hatred for the company and non-stop bashing, you cannot ignore its cheap relative valuation despite its YTD performance:

Price to sales:

BBY = 0.17
AMZN = 2.0
CONN = 3.3
WMT = 0.55

EBITDA multiple:

BBY = 4.0
AMZN = 44.4
CONN = 17.4
WMT = 8.4