Best Buy Co Inc (NYSE:BBY) stock rose 0.84% (As on March 5, 11:34:31 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY24. Enterprise revenues were $13,948 million, which dipped 4.8% from the prior-year quarter’s $14,646 million. Gross profit dropped 2.8% year over year to $2.92 billion, while the gross margin expanded 40 basis points (bps) to 20.9%. We had projected an adjusted gross margin expansion of 20 bps. Adjusted operating income was $690 million, down 6.1% from $735 million in the year-ago quarter. The adjusted operating margin dipped 10 bps to 4.9%. Best Buy ended the quarter with cash and cash equivalents of $1.58 billion, long-term debt of $1.14 billion, and a total equity of $2.81 billion.

Moreover, Domestic comparable sales saw a slight increase of 0.2%, while revenues declined 5.2% year over year to $12.7 billion. From a merchandising standpoint, the primary contributors to the comparable sales increase, on a weighted basis, were computing, tablets and services. However, these gains were partially offset by declines in appliances, home theater and gaming categories. Domestic online revenues were $5.02 billion, reflecting a 2.6% increase on a comparable basis. Online sales accounted for 39.5% of total domestic revenues, up from 38% in the previous year. The domestic gross margin rose 50 bps year over year to 20.9%, primarily driven by improved financial performance in the company’s services segment, including its membership offerings. International comparable sales grew 3.8% year over year, while revenues declined 0.2% to $1.23 billion.

BBY in the fourth quarter of FY24 has reported the adjusted earnings per share of $2.58, beating the analysts’ estimates for the adjusted earnings per share of $2.40, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 4.8 percent to $13.95 billion in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $13.66 billion.

For the fiscal first quarter, BBY expects comparable sales to decline slightly year over year, with an adjusted operating income rate of 3.4%.  For fiscal 2026, revenues are expected between $41.4 billion and $42.2 billion. BBY projects comparable sales growth of flat to 2% for the year, with stronger growth anticipated in the second half due to the timing of product launches and key initiatives. The enterprise-adjusted operating margin is projected between 4.2% and 4.4%. Adjusted earnings per share is forecast between $6.20 and $6.60, and the capital expenditure is anticipated to be $700-$750 million.