What to Look For in Best Buy’s Report on Tuesday

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Best Buy Co., Inc. (NYSE: BBY) is scheduled to release fiscal third quarter financial results before markets open Tuesday. The consensus estimates from Thomson Reuters are calling for $0.85 in earnings per share (EPS) and $9.57 billion in revenue. The same period from last year had $0.78 in EPS and $9.32 billion in revenue.

There were some issues with guidance in the fiscal second quarter. In terms of third quarter guidance, the company said that it expected to see EPS in the range of $0.79 to $0.84 and enterprise revenue between $9.4 billion and $9.5 billion, with enterprise comparable sales up 2.5% to 3.5%.

In the most recent quarter, enterprise comparable sales grew 6.2%, compared to an increase of 5.4% in the same period last year. This consisted of domestic comparable sales of 6.0% and international comparable sales of 7.6%.

Excluding Monday’s move, Best Buy has outperformed the broad markets with its stock up 20% in the past 52 weeks. In just 2018 alone, the stock is actually down 3%.

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

  • Merrill Lynch has a Neutral rating with a $70 price target.
  • Morgan Stanley has an Equal Weight rating with an $80 price target.
  • Credit Suisse has a Hold rating with a $78 price target.
  • Barclays has a Buy rating with a $90 price target.
  • Raymond James has a Buy rating with a $90 price target.
  • JPMorgan has a Neutral rating with a $79 price target.
  • Deutsche Bank has a Hold rating with a $76 price target.

Shares of Best Buy were last seen down over 3% at $64.21, with a consensus analyst price target of $78.22 and a 52-week range of $55.82 to $84.37.