Best Buy Co. Inc. (NYSE: BBY) is scheduled to report its fiscal second-quarter financial results Tuesday before the markets open. The consensus estimates from Thomson Reuters call for $0.34 in earnings per share (EPS) on $8.29 billion in revenue. In the same period of the previous year, the specialty retailer posted EPS of $0.44 and revenue of $8.90 billion.

This top electronics retailer has bounced back-and-forth as a Wall Street favorite, and it could be set for a solid second half despite corporate guidance for sluggish sales. Best Buy announced recently it would start selling the Apple Watch next month, becoming the first national retail chain to offer the device outside of Apple’s own stores. This could be just the kind of product to help lure consumers back to the retailing giant.

A lack of new and innovative product offerings has hampered demand for the broader electronics industry, with the few bright spots being mobile phones. Last year’s release of Apple’s iPhone 6 and ultra-high-definition televisions drove customers to stores in big numbers. With Windows 10, the Apple Watch and an iPhone 6s on the way, things could really look up for Best Buy.

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Selling the Apple Watch is another plan to improve Best Buy’s prospects for its electronics sales. However, the Apple Watch has had sales problems as well. Adding two struggling brands together may not produce a sum for success. However, Apple needs this opportunity to distribute its smartwatch through this large retailer, and Best Buy needs this opportunity to shake up its sales.

One of Best Buy’s problems is that it cannot release new products any faster than Amazon or even Wal-Mart. If Apple wants any large watch sales over the holidays, it will have to increase its distribution to at least these two huge retailers. Otherwise its will handicap smartwatch sales. Best Buy may be the first to announce a deal with Apple, but it will soon be joined by these others.

A few analysts weighed in on Best Buy ahead of earnings:

• Piper Jaffray reiterated a Buy rating but lowered its price target to $35 from $45.
• B. Riley reiterated a Buy rating with a $47 price target.
• Credit Suisse reiterated a Buy rating with a $45 price target.

So far on the year, Best Buy has underperformed the market, as shares are down over 20% in 2015. Over the past 52 weeks, shares are barely up 0.5%.

Shares of Best Buy were up 0.8% at $30.41 Monday afternoon. The stock has a consensus analyst price target of $40.95 and a 52-week trading range of $28.34 to $42.00.

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