Best Buy Company Inc. (BBY) has reported a 55.20 percent jump in profit for the quarter ended Oct. 29, 2016. The company has earned $194 million, or $0.61 a share in the quarter, compared with $125 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $198 million, or $0.62 a share compared with $144 million or $0.41 a share, a year ago.
Revenue during the quarter went up marginally by 1.43 percent to $8,945 million from $8,819 million in the previous year period. Gross margin for the quarter expanded 68 basis points over the previous year period to 24.63 percent. Total expenses were 96.51 percent of quarterly revenues, down from 97.39 percent for the same period last year. This has led to an improvement of 88 basis points in operating margin to 3.49 percent.
Operating income for the quarter was $312 million, compared with $230 million in the previous year period.
However, the adjusted operating income for the quarter stood at $321 million compared to $247 million in the prior year period. At the same time, adjusted operating margin improved 79 basis points in the quarter to 3.59 percent from 2.80 percent in the last year period."
We are pleased to report today growth on both our top and bottom lines," said Best Buy Chairman and CEO Hubert Joly. "We are excited by the continued product innovation we are seeing, the role we play for customers, the growth opportunities in front of us, the quality of our execution and the strength of our financial performance."
For the fourth-quarter, Best Buy Company Inc. expects revenue to be in the range of $13,400 million to $13,600 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.62 to $1.67.
Operating cash flow improves significantly
Best Buy Company Inc. has generated cash of $1,395 million from operating activities during the nine month period, up 201.30 percent or $932 million, when compared with the last year period.
The company has spent $856 million cash to meet investing activities during the nine month period as against cash outgo of $618 million in the last year period.
The company has spent $1,187 million cash to carry out financing activities during the nine month period as against cash outgo of $761 million in the last year period.
Cash and cash equivalents stood at $1,341 million as on Oct. 29, 2016, down 20.98 percent or $356 million from $1,697 million on Oct. 31, 2015.
Debt comes down
Best Buy Company Inc. has recorded a decline in total debt over the last one year. It stood at $1,367 million as on Oct. 29, 2016, down 16.29 percent or $266 million from $1,633 million on Oct. 31, 2015. Total debt was 9.40 percent of total assets as on Oct. 29, 2016, compared with 10.76 percent on Oct. 31, 2015. Debt to equity ratio was at 0.32 as on Oct. 29, 2016, down from 0.35 as on Oct. 31, 2015. Interest coverage ratio improved to 19.50 for the quarter from 11.50 for the same period last year.
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