Today’s Research Reports on Stocks to Watch: Best Buy and H&R Block
Best Buy shares took a small beating on Wednesday after posting impressive second quarter financial results on Tuesday. It seems a Houston based Best Buy was selling bottled water at unbelievable prices during the wake of the Hurricane that just hit which left people outraged. H&R Block shares also closed in the red after reporting fiscal first quarter earnings that revealed a net loss worse than expected.
RDI Initiates Coverage on:
Best Buy Co Inc.
H&R Block, Inc.
Best Buy Co., Inc. shares closed down 1.51% yesterday on around 14.2 million shares traded. The company had some pretty bad press after pictures revealed that a Houston-area Best Buy was selling water cases for as much as $42 in the wake of Hurricane Harvey. A big case of water was going for $42.96 in the store and a smaller option at $29.98. Needless to say many people were outraged. Best Buy did apologize and said it was a mistake made by store employees. On Tuesday the retailer also reported fiscal second-quarter results revealing a profit of 67 cents. After being adjusted for one-time gains and costs, EPS was 69 cents. This was ahead of the 63 cents that the Street had expected. Revenue at $8.94 billion was also ahead of the $8.66 billion that analysts had been waiting for. Looking ahead, for the current third quarter Best Buy is expecting EPS of 75 cents to 80 cents and revenues of $9.3 billion to $9.4 billion for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $8.98 billion. Best Buy shares have climbed over 27% YTD.
Access RDI’s Best Buy Co Inc. Research Report at:
H&R Block, Inc. shares tumbled on Wednesday and closed the day down 8.28%. Trading volume at nearly 8.5 million shares was significantly higher than the stock’s average volume of a little under 3 million shares. The stock was one of the biggest losers on the NYSE after it reported earnings for the fiscal first quarter. While revenue grew 10% over the year ago quarter and hit $138 million, which was also ahead of the $129 million expected by the Street, the company’s net loss was worse than expected. H&R Block reported a net loss of $0.63 which was a penny worse than the loss of $0.62 expected. The per share loss was also 7 cents higher than the loss seen in same quarter last year. The company announced plans to pay its quarterly dividend of $0.24 on October 2nd. It also didn’t help yesterday that President Donald Trump has called for simpler tax code. Prior to the company’s earnings release, shares of the stock were up about 30% YTD.
Access RDI’s H&R Block, Inc. Research Report at:
Our Actionable Research on Best Buy Co., Inc. (NYSE: BBY) and H&R Block, Inc. (NYSE: HRB) can be downloaded free of charge at Research Driven Investing.
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