Best Buy Prepares for First-Quarter Earnings Announcement

Upcoming Earnings Release and Projections

Best Buy (NYSE: BBY) will release its fiscal Q1 earnings on May 29, 2025. Analysts expect earnings of $1.09 per share and revenue of $8.82 billion. These figures would mark a 4% decrease in earnings from $1.13 per share and flat sales growth compared to $8.85 billion last year. Historically, Best Buy shares have risen 58% of the time following earnings announcements, with a median increase of 3.9% and a maximum rise of 14%.

Fiscal Year 2026 Guidance

For fiscal 2026, Best Buy anticipates revenue between $41.4 billion and $42.2 billion, slightly lower than the $41.5 billion in FY 2025. Comparable sales growth is projected at 0% to 2% year-over-year. This guidance excludes potential tariff impacts. Best Buy expects consumers to maintain cautious spending habits due to ongoing high inflation, affecting discretionary purchases of large items.

Current Financial Position

The company maintains a market capitalization of $15 billion, and its recent revenue stands at $42 billion. Best Buy reported $1.3 billion in operating profits, along with net income of $927 million.

Historical Earnings Patterns

Event-driven traders can benefit from historical earnings patterns. Over the last five years, 19 earnings data points show 11 positive and 8 negative one-day returns, yielding a 58% positive ratio. This improves to 64% over the last three years. The median increase for positive returns was 3.9%, while negative returns averaged -5.9%.

Correlation Insights

Understanding the correlation between short-term and mid-term returns can guide trading strategies. For example, if the one-day return post-earnings is positive, traders may consider a “long” position for the following five days, particularly if a high correlation exists.

Peer Influence on Earnings Reactions

Peer performance can affect post-earnings reactions. Price movement may start before earnings announcements. Historical data comparing Best Buy with its peers shows how their stock price movements interact after earnings releases. This context is crucial for informed trading decisions.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.