The chatter going to Best Buy’s (BBY) first-quarter earnings announcement was that tax rebates would save the day. They did!
Best Buy’s Q1 EPS of $0.43 beat the $0.37 consensus. Revenue was $9 billion, beating the $8.56 billion consensus.
BBY also reaffirmed its outlook:
Jim Muehlbauer, Best Buy’s executive vice president of finance and CFO, said, “We are off to a solid start and remain on track to deliver $3.25 to $3.40 of diluted EPS for the year. The ability of our employees to deliver strong top-line and positive operating income results in a challenging environment reflects their focus on the customer and underscores our belief in their ability to grow the company.”
But will Best Buy continue to beat estimates after the rebate steroids shot is gone in a few months? We doubt it.
Best Buy (BBY) Gets Rebate Steroid Shot: Don’t Be Fooled–Won’t Last (BBY)
Best Buy (BBY) To Get Some of Your Tax Rebates, Too (BBY, WMT)
Best Buy (BBY) Could Get Crushed By Wal-Mart (WMT) (BBY, CC, WMT