Home / Business / Best Buy sees an opportunity in foldable phones and home automation technology

Best Buy sees an opportunity in foldable phones and home automation technology

Best Buy Co. Inc. looks to the future and sees opportunities in areas such as mobile devices, smart home technology and digital health.

"On the mobile side, we are seeing new technological innovations in areas such as wireless energy, security and accessibility," said Best Buy's.

BBY, + 14.11%

The CEO, Hubert Joly, according to a transcription of FactSet. "We are also excited to see foldable phones emerge in the coming months."

After a fourth-quarter release in which earnings per share more than doubled, store sales rose 3%, much more than the FactSet consensus, with growth of 1.8%. Joly said the company was considering the future.

Joly attributed the company's performance, in part, to technological innovation, which he said could "stimulate customer demand."

Lily: Macy's sales hit by a fire and a fumble during promotional events

In addition to these foldable mobiles, he highlighted smart home technology, like connected cameras, because of its potential.

"Notably, the size of the Internet-of-Things connected hardware retail market is expected to triple by 2025," he said.

The big screen TVs, 4K, OLED and the introduction of the 8K are also the focus of concern. And Best Buy is considering digital health as a booming space, with a number of exhibitors at the Consumer Electronics Show rising nearly by one quarter in twelve, Joly said.

Best Buy acquired the GreatCall digital health company in 2018.

"As children of aging parents, many of us appreciate the potential of our health monitoring service, which allows seniors to live longer in their homes by reducing the costs of associated health care," did he declare. "We are currently participating in pilot projects with a number of healthcare management organizations and, over time, we believe this could be an important growth opportunity for us."

Moody's found a lot of things in these results, including online revenue, up 9.3% to $ 2.96 billion, and sales performance by store.

See: Unlike retailers seeking growth in cities, Tractor Supply targets consumers living in the countryside.

"With $ 2 billion in cash, liquidity remains strong and the recharge of $ 3 billion in stock repurchases and the dividend increase are part of our margins of tolerance and continue to represent a financial policy. balanced, "said Charlie O. Shea, principal analyst of Best Buy at Moody's.

Nevertheless, CFRA downgraded Best Buy to resell it, and reduced its price target from $ 72 to $ 60.

"[W]We see margins under pressure until fiscal year 2021, as US demand for computing and mobile telephony (about half of Best Buy revenues) is approaching oversaturation, Apple

AAPL, + 0.31%

expands Amazon's distribution and competition

AMZN, + 0.29%

intensifies, "said Camilla Yanushevsky, of CFRA, in a note.

"We are also finding that Amazon is gaining market share in smart home connectivity after Eero's purchase."

Best Buy shares climbed 14.1% in trading on Wednesday but fell 3.7% in the past year. The S & P 500 index

SPX, -0.05%

is up 1.8% in the last 12 months.

Source link