Deutsche Bank Reports Positives And Negatives On Best Buy

According to Deutsche Bank, Best Buy (NYSE: BBY) is seeing some positives and some negatives.

Deutsche Bank reported that 4Q11 results were about as expected at $1.98 versus consensus of $1.85, but most of the upside from a lower tax rate. “Comps were down 5.5% domestically, again about in line with expectations. Gross margins were a bit better than expected. 2012 (Feb 2012) guidance is below consensus, but we don't mind that BBY sets the bar low, although continued weakness in 1Q12 (May 2012) is a concern. We maintain our Buy rating, balancing low valuation, strong free cash flow, improving gross margins and easier comparisons with weak sales trends.”

Best Buy closed yesterday at $31.85.