Best Buy (BBY) will report first quarter (April) results tomorrow morning and management will host a conference call at 7:00 AM EST. 

The company guided for first quarter non-GAAP EPS up 1-7% to $0.83-0.88 with revenue up 1.4% at the midpoint to $9.05-9.15 bln and comparable store sales up 0-1%. Analysts expect EPS of $0.87 on revenue of $9.14 bln with comps up 1%. 

Best Buy tends to guide conservatively. The company has beaten Wall Street's estimates on the top and bottom line for five consecutive quarters while posting positive comparable store sales eight quarters in a row. 

Best Buy's outlook for fiscal 2020 (ending January) calls for non-GAAP EPS up 2-6% to $5.45-5.65 on revenue of $42.9-43.9 bln (+1.2%) with comparable store sales up 0.5-2.5% and flat adjusted gross and operating margins. The company expects to continue taking market share in the consumer electronics category. Up to $1 bln in share repurchases will boost EPS. 

This will be Hubert Joly's last call as CEO. He has done a phenomenal job at Best Buy since taking over in 2012, successfully instituting Renew Blue initiatives. Best Buy is one of the few retailers that has really improved its position in the sector as the shift toward online shopping reduced foot traffic at most brick and mortar retailers. Best Buy did the right thing standing its ground versus Amazon and big box discounters by remaining competitive on price while investing in its website and differentiating through customer service and key supply partnerships. Last year, the company hit its 2021 revenue and adjusted profit targets two years ahead of schedule. 

It appears Best Buy will remain in good hands. Incoming CEO Corie Barrie was Chief Strategic Officer for years and became CFO in 2016. As a result, investors have reason to expect a smooth transition and believe that the positive status quo will remain in place at Best Buy going forward. 


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Best Buy shares trade at ~12x EPS and ~6x EV/EBITDA, a slight discount to a broad group of retailers; the stock has a near 3% dividend yield.