Best Buy Co., Inc. (NYSE:BBY) is a leading consumer electronics retailer known for its wide range of products and services. The company operates in a competitive market alongside other major retailers like Amazon and Walmart. On March 4, 2025, Best Buy reported its fourth-quarter earnings, revealing key financial metrics that provide insights into its performance.
Best Buy reported earnings per share (EPS) of $0.543, which fell short of the estimated $2.40. However, the company generated revenue of approximately $13.95 billion, surpassing the estimated $13.70 billion. This revenue figure marks a 4.8% decline compared to the same period last year, yet it exceeded the Zacks Consensus Estimate of $13.66 billion, resulting in a revenue surprise of 2.08%.
Despite the lower EPS, Best Buy's adjusted earnings per share for the quarter were $2.58, slightly down from $2.72 in the previous year. This figure surpassed the consensus EPS estimate of $2.40, delivering a positive surprise of 7.50%. The strong performance was largely attributed to robust holiday sales, particularly in the computing segment.
The quarter was impacted by a $475 million goodwill impairment charge related to Best Buy's health division, indicating weaker long-term business prospects in that area. Despite these challenges, the company concluded the quarter with solid sales, although it continues to face sector-specific hurdles.
Best Buy's financial ratios, such as a P/E ratio of 17.25 and a debt-to-equity ratio of 1.21, provide further insights into its market valuation and financial health. Best Buy's enterprise value to sales ratio of 0.44 and an enterprise value to operating cash flow ratio of 10.61 reflect its total valuation relative to sales and cash flow from operations. With an earnings yield of about 5.80%, the company offers a return on investment for shareholders. The current ratio of 1.03 suggests Best Buy's ability to cover short-term liabilities with short-term assets, indicating a stable financial position.
