Best Buy Results Indicate Challenges, Analyst Says; CFO Takes 'Moderate' View on Next iPhone
After soaring 22 percent Thursday to $61.27 following a better-than-expected Q1 earnings report (see 1705250026), Best Buy shares closed 3.7 percent lower Friday at $58.98. The results come amid challenges, Wedbush Securities analyst Michael Pachter wrote investors Friday. Wedbush expects…
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growth to “stall in the back half” of Q2 on a “possibly delayed iPhone 8 launch” and aggressive holiday pricing “as Amazon protects itself from Walmart, with Best Buy caught in the crossfire.” On the Thursday earnings call, Best Buy CEO Hubert Joly said Q1 mobile sales topped expectations amid demand from new unlimited data plans. Joly cited customers moving into installment billing plans that extended smartphone replacement cycles. Chief Financial Officer Corie Barry said Best Buy is taking a “moderate” view on the next iPhone release. Helping the company's recovery from previously tougher financial times are partnerships, and it's expanding tech support and related options, executives said.