What to Expect When Best Buy Reports Thursday Morning

May 22, 2019 by Chris Lange

Best Buy Co. Inc. (NYSE: BBY) 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.

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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