Retail

What to Expect When Best Buy Reports Tuesday

Best Buy is scheduled to release its fiscal second-quarter financial results before the markets open on Tuesday.

By Chris Lange
Published August 27, 2018, 1:05pm ET · 2 min read

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A Best Buy retail store captured at dusk. The prominent yellow Best Buy logo with a white circular detail is brightly lit on the store's dark blue upper facade. Below, large glass windows and automatic doors reveal a brightly illuminated interior, with a red 'OPEN' sign visible. The lower portion of the building is constructed from red brick, and several individuals are visible near the entrance, along with a parked car and a bicycle. The sky above is a pale grey-blue.
The exterior of a Best Buy store, a physical representation of the electronics retailer whose dividend performance is being assessed for long-term sustainability. © Scott Olson / Getty Images

Best Buy Co. Inc. (NYSE: BBY) is scheduled to release its fiscal second-quarter financial results before the markets open on Tuesday. The consensus estimates from Thomson Reuters call for $0.83 in EPS and $9.28 billion in revenue. The same period of last year reportedly had EPS of $0.69 and $8.94 billion in revenue.

The company previously issued guidance for this quarter with EPS in a range of $0.77 to $0.82 and enterprise revenues between $9.1 billion and $9.2 billion. Same-store sales are forecast to rise 3% to 4%.

At the time, the second-quarter earnings guidance was considered soft and even though revenues are guided above estimates, the difference is not enough to make investors swoon, and that’s what’s needed these days.

In its most recent quarter, the company reported that enterprisewide same-store sales rose 7.1% year over year in the quarter, and domestic sales rose by the same amount. Domestic online sales rose 12.0% for the quarter and international online sales rose by 6.4%. Total domestic sales account for about 92% of Best Buy’s revenues.

Overall, Best Buy has outperformed the broad markets, with its stock up 33% in the past 52 weeks. In just 2018 alone, the stock is up 20%.

A few analysts weighed in on Best Buy ahead of the report:

  • Wedbush has a Sell rating with a $65 price target.
  • Jefferies has a Hold rating with a $79 price target.
  • Morgan Stanley has a Buy rating.
  • Loop Capital has a Buy rating and an $85 price target.
  • Wells Fargo has a Hold rating with a $77 price target.

Shares of Best Buy were last seen at $82.15, with a consensus analyst price target of $77.85 and a 52-week range of $51.61 to $84.37.

Contact [email protected] for any questions or corrections.

Disclaimer: Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.
Chris Lange

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.

All articles →