On Tuesday morning, Best Buy (BBY) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside BBY’s Earnings
Earnings
Best Buy reported earnings of $519 million, or $1.46 per share, up from $293 million, or 83 cents per share, a year ago. Adjusted EPS came in at $1.47 and beat analysts’ view of $1.35.
Revenue
Sales rose $14.21 billion from $14.03 billion. Analysts expected to see revenue of $14.35 billion. Comparable store sales increased 2%, compared to a 1.3% decline last year.
Buy Backs and Dividends
Profits soared 77% in the fourth quarter, and now shareholders are being rewarded. Best Buy announced that it has added an additional $1 billion authorization to its $5 billion share repurchase program.
Dividend investors were rewarded as well. The retailer boosted its dividend 21% from 19 cents to 23 per share – boosting its yield to approximately 2.4%. Shareholders will also be receiving a special dividend of 51 cents.
Mutual Funds to Watch
Investors interested in BBY may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FLPSX | Fidelity® Low-Priced Stock | 9.58% |
| FGLLX | Fidelity Series Intrinsic Oppos | 1.79% |
| VMCIX | Vanguard Mid Cap | 1.54% |
The Bottom Line
The funds listed above allow investors to gain exposure to BBY while remaining diversified. Investors interested in BBY may also be interested in GameStop (GME).