What to Look for in Best Buy Earnings
Best Buy is scheduled to release its fiscal first-quarter earnings report before the markets open on Tuesday.
Best Buy Co. Inc. (NYSE: BBY) is scheduled to release its fiscal first-quarter earnings report before the markets open on Tuesday. The consensus estimates call for $0.35 in earnings per share (EPS) on $8.29 billion in revenue. In the same period of last year, the specialty retailer posted EPS of $0.37 and $8.56 billion in revenue.
This company offers sharp discounts on some of the items sold at BestBuy.com. The consumer electronics retailer may do this for several reasons. Among them are clearance of inventory that would not sell quickly without discounts, a method to bring in customers who might buy other items on which Best Buy makes larger margins, or a means to keep pace with online sales by Amazon.com.
About two years ago, Facebook Inc. (NASDAQ: FB) paid a reported $2 billion to acquire virtual reality (VR) headset maker Oculus Rift. And despite delays getting the product out the door, buyers will be able to attend an in-store demo and, if they’re extremely lucky, purchase one of a limited number of the headsets that debuted at 48 Best Buy stores earlier this month.
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A few analysts weighed in on Best Buy prior to the release of the earnings report:
- Raymond James reiterated a Buy rating.
- Jefferies reiterated a Buy rating with a $39 price target.
- Deutsche Bank reiterated a Buy rating with a $38 price target.
- Barclays initiated coverage with an Overweight rating and a $45 price target.
- Guggenheim initiated coverage with a $45 price target.
So far in 2016, Best Buy has outperformed the broad markets, with the stock up nearly 10%. Over the past 52 weeks. the stock is actually down about 4%.
Shares of Best Buy were trading up 2.1% at $33.03 on Monday, with a consensus analyst price target of $34.44 and a 52-week trading range of $25.31 to $39.10.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
