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News Breaks
November 19, 2012
11:40 EDTBBYEarnings Preview: Best Buy may offer comments on Schulze in Q3 report
Best Buy (BBY) is expected to report Q3 earnings before the market open on Tuesday, November 20 with a conference call scheduled for 9:00 am ET. Analysts are looking for a profit of 12c on revenue of $10.73B. The consensus range is 4c-23c for EPS, and revenue of $10.43B-$11.48B, according to First Call. On August 21, Best Buy suspended its earnings guidance due to lowered expectations for industry wide sales and the uncertainty associated with several key product launches expected in 2H13. In addition, the company named Hubert Joly as CEO, who began his role in September. In its Q2 report, Best Buy said it would suspend buybacks for FY13 for the CEO transition and forecast annual free cash flow of $1.25B-$1.5B. On the associated conference call, Best Buy said that trends seen in Q2 won't extend to 2H "in the same way" and that it wasn't expecting major improvements in key international businesses. During the quarter, Joly outlined turnaround plans, which include cost cutting, rethinking store square footage, improving customer service in stores and creating a better online experience. Joly says Best Buy aspires to achieve over time an operating margin of 5%-6% and a return on invested capital of 13%-15%. Best Buy also hired Sharon McCollam, the retired COO and CFO of Williams-Sonoma (WSM), as its new Chief Administrative Officer and CFO. Bloomberg recently said founder Richard Schulze is still exploring a buyout offer and will likely seek a 30-day extension to conduct due diligence. The New York Post said sources close to the company believe Best Buy is open to considering a lowered bid from Schulze, possibly at around $20 per share. Analysts and investors will listen for comments from the company on the status of Schulze's bid, as well as any updates on its turnaround plan and how it views the holiday season. The company may also note any impact it is seeing on Q4 from Hurricane Sandy. Oppenheimer believes that Best Buy's new strategy fails to aggressively address the two factors that have hurt the company's results in recent years: price competition from online retailers and an ineffective store infrastructure.
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July 21, 2014
10:45 EDTBBYAnalysts roll out coverage on GoPro with differing views
Shares of GoPro (GPRO) are climbing after a number of analysts initiated coverage of the stock with different outlooks. GoPro develops mountable and wearable cameras. BULLISH TAKE: JPMorgan analyst Paul Coster initiated coverage of GoPro with an Overweight rating. GoPro is gaining share in the digital camcorder market, and it has begun to penetrate "active lifestyle" markets, which are a much larger opportunity for the company, Coster believes. The company could ship 10M of its products for use by active lifestyle participants annually, the analyst estimated. In a best case scenario, the company could also sell low-cost devices for the mass market, according to Coster. However, GoPro will face competition from major companies, including Google (GOOG) and possibly Apple (AAPL) in this market, warned Coster, who set a $51 price target on GoPro. Also initiating coverage of the name with an Overweight rating was Piper Jaffray analyst Sean Naughton. GoPro is in the early stages of growth, as the company's user base is poised to expand beyond extreme sports enthusiasts, the analyst forecast. The company has a competitive advantage over other brands, which should enable it to maintain strong profitability, added Naughton, who set a $48 price target on the shares. BEARISH TAKE: Stifel analyst Jim Duffy started coverage of GoPro with a Hold rating. The company's three year growth outlook is compelling, but the stock is fully valued, the analyst believes. The company faces a number of risks, including competition in the image device market and the possibility that its relationship with key channel partners, including Best Buy (BBY), could be disrupted, the analyst wrote. Sales to Best Buy accounted for 17% of GoPro's revenue in fiscal 2013, Duffy reported. After GoPro surged following its initial public offering, the stock is likely to advance by only limited amounts, wrote Barcalys analyst Joseph Wolf, who initiated coverage of the shares with an Equal Weight rating. The stock could fall to $30 if the company is unable to increase its hardware sales or make progress in its efforts to develop a media business, the analyst warned. He set a $45 price target on the shares. PRICE ACTION: A total of seven analysts rolled out coverage today on GoPro, according to The Fly’s research, with only two recommending the stock with buy-equivalent ratings. Shares of the camera marker are up 3%, or $1.10, to $42.53 in morning trading.
July 16, 2014
12:22 EDTBBYBest Buy calls active on speculation of an activist investor stake
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10:24 EDTBBYRumor: Best Buy moves up on speculation of an activist investor stake
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July 11, 2014
06:16 EDTBBYBest Buy price target raised to $36 from $31 at Citigroup
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