Thomson Reuters has consensus earnings estimates of $0.31 in per share and $8.99 billion in revenues. This would compare to the results for the same quarter a year ago of $0.32 earnings per share and $9.3 billion in revenue. Estimates for the coming quarter are $0.23 in earnings per share and $9.13 in revenues.
Best Buy has seen its shares slowly climb back above the $30 mark in recent months, after falling as low as $22.15 in January from $41.00. Since its most recent earnings report in May, Best Buy has seen about a 20% increase in share price.
If investors are looking for support levels after a recent rally, the share price has risen above both the 50-day and 200-day moving averages. The 50-day moving average has risen to $30.21, surpassing the 200-day moving average at $30.14.
Best Buy’s chief accounting office and chief financial officer, Sharon McCollam, warned about declining sales with the May earnings report. The company’s quote was:
As we look forward to the second and third quarters, we are expecting to see ongoing industry-wide sales declines in many of the consumer electronics categories in which we compete. We are also expecting ongoing softness in the mobile phone category as consumers eagerly await highly-anticipated new product launches. Consequently, absent any major product launches, we are expecting comparable sales to be negative in the low-single digits in both the second and third quarters. From an operating income rate perspective, as we outlined last quarter, we are expecting the negative P&L impacts that we have been discussing each quarter – including ongoing investments in price competitiveness, our Renew Blue SG&A investments, and the negative impact of our new credit card agreement — to continue, but to be significantly offset by our Renew Blue cost reductions.
Despite a lower guidance shown in May, Best Buy raised its dividend in June, and its dividend yield is now close to 2.6%. With shares recently trading at $31.26, and a 52-week range of 22.15 to $44.66, the consensus analyst price target is $33.18.
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