What to Expect When Best Buy Reports Tuesday

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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.