Best Buy Set to Release Q3 Earnings; Analysts Optimistic on Performance
Company Overview and Upcoming Earnings Announcement
Best Buy Co., Inc. (BBY), based in Richfield, Minnesota, is a leading retailer of consumer electronics, home office products, and appliances. With a market capitalization of $19.7 billion, the company also competes in pre-recorded home entertainment. Investors are eagerly anticipating Best Buy’s fiscal third-quarter earnings report for 2024, which is scheduled for release on Tuesday, Nov. 19.
EPS Forecast and Recent Trends
Ahead of the announcement, analysts predict that BBY will report earnings of $1.30 per share on a diluted basis, a slight increase from $1.29 in the same quarter last year. Over the last four quarters, the company has consistently outperformed Wall Street’s earnings per share (EPS) estimates.
For the entire fiscal year, experts anticipate an EPS of $6.28, reflecting a 1.4% decrease from $6.37 in fiscal 2024. However, EPS is expected to rebound with a 9.6% increase to $6.88 in fiscal 2026.
Stock Performance Compared to Market Benchmarks
BBY’s stock has not kept pace with the S&P 500’s impressive 41.7% gain over the past year, with shares rising 39.7% in the same frame. Yet, it did outperform the Consumer Discretionary Select Sector SPDR Fund (XLY), which rose by 33.9% during this period.
Key Strategies and Recent Results
Best Buy’s positive performance is largely credited to its management’s optimistic vision for the industry. Their strategy focuses on cost-cutting, efficiency in management, and an emphasis on higher-margin products and services. The growth in membership and services has also contributed to improved margins. Despite facing lower consumer demand, the company’s recent performance indicates a strengthening trend.
On Aug. 29, BBY shares surged over 14% following the announcement of its Q2 results. The reported adjusted EPS of $1.34 exceeded expectations of $1.16, while revenue fell 3.1% year over year to $9.3 billion. Nonetheless, the company raised its full-year adjusted EPS forecast to a range of $6.10 to $6.35, anticipating annual revenue between $41.3 billion and $41.9 billion.
Analyst Ratings and Future Outlook
Currently, the consensus among analysts regarding BBY stock is moderately positive, reflected in an overall “Moderate Buy” rating. Out of 23 analysts, 11 recommend a “Strong Buy,” another 11 suggest a “Hold,” and one gives a “Moderate Sell.” The average price target for BBY stands at $105.50, suggesting potential growth of 17.3% from its current price.
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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
