Retail

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

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

By Chris Lange
Published November 19, 2018, 12:40pm ET · 2 min read

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 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.

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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.

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