What to Expect When Best Buy Reports Thursday Morning
Best Buy is scheduled to release its fiscal first-quarter financial results before the markets open on Thursday, and analysts are looking for modest year-over-year growth.
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Best Buy Co. Inc. (NYSE: BBY | BBY Price Prediction) is scheduled to release its fiscal first-quarter financial results before the markets open on Thursday. The consensus estimates are calling for $0.86 in earnings per share (EPS) and $9.13 billion in revenue. The same period of last year reportedly had $0.82 in EPS and $9.11 billion in revenue.
In its fiscal fourth-quarter report, Best Buy offered guidance for EPS in the range of $0.83 to $0.88 and Enterprise revenue between $9.05 billion and $9.15 billion.
At the same time, the company said enterprise comparable sales growth increased 3.0% year over year. This consisted of Domestic comparable sales increasing 3.0% and International comparable sales increasing by 2.5%. Domestic comparable online sales grew 9.3%.
From a merchandising perspective, Best Buy generated comparable sales growth across multiple categories, with the largest drivers being wearables, appliances, smart home and gaming. However, these positive drivers were partially offset by a decline in the mobile phone category.
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It’s worth pointing out that this is the independent leader of consumer electronics and home goods, and it has managed to withstand the pressure from Amazon and other online retailers over the years. Its performance this year speaks to that success.
Overall, Best Buy has outperformed the broad markets, with its stock up about 32% year to date. However, in the past 52 weeks, the stock is actually down over 10%.
A few analysts weighed in on Best Buy ahead of the report:
- Wedbush has a Hold rating with a $71 price target.
- Jefferies has a Buy rating and an $88 price target.
- Oppenheimer has an Outperform rating with an $86 target.
- Evercore ISI has an In-Line rating.
- Wolfe Research has a Buy rating.
Shares of Best Buy were last seen trading at $69.98, in a 52-week range of $47.72 to $84.37. The consensus price target is $77.41.
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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.
