Consumer electronics retailer Best Buy on Tuesday beat Wall Street's targets for its fiscal fourth quarter. But its guidance for the current year was mixed. BBY stock fell after the report.
The Richfield, Minn.-based company earned an adjusted $2.58 a share on sales of $13.95 billion in the quarter ended Feb. 1. Analysts polled by FactSet had expected fiscal Q4 earnings of $2.40 a share on sales of $13.68 billion. On a year-over-year basis, Best Buy earnings and revenue each declined about 5%.
With its fiscal Q4 report, Best Buy has now posted 13 consecutive quarters of declining sales on a year-over-year basis. Much of that has to do with its shrinking store count.
Best Buy's better-than-expected Q4 results were driven by "strong growth in computing as well as improved sales performance in other categories," Chief Executive Corie Barry said in a news release.
For the current fiscal 2026, Best Buy is targeting adjusted earnings of $6.40 a share on sales of $41.8 billion. That's based on the midpoint of its guidance. Analysts were modeling earnings of $6.58 a share on sales of $41.75 billion. In the just-finished fiscal 2025, Best Buy earned an adjusted $6.37 a share, unchanged from a year earlier, on sales of $41.53 billion, down 4.4%.
However, Best Buy said its guidance for the current fiscal year does not include the impact of recently implemented or proposed tariffs.
New U.S. tariffs on imports from Canada and Mexico took effect on Tuesday. They include 25% tariffs on electronics, such as computers assembled in Mexico. The Trump administration also doubled China tariffs, to 20%. China is a major exporter of electronics including mobile phones, computers and other gear.
BBY Stock Retreats After Report
On the stock market today, BBY stock dropped 13.3% to close at 75.20.
Best Buy stock has been struggling lately and trades beneath its 200-day moving average line, according to IBD MarketSurge charts. On Tuesday, BBY stock plunged below its 50-day moving average line, a key support level.
In other news, Best Buy announced a 1% increase to its quarterly dividend to 95 cents a share.
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