What to Expect From Best Buy Earnings

By Chris Lange Updated Jan 13, 4:23AM EST · Published Aug 22, 9:20AM EDT

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What to Expect From Best Buy Earnings — © Michael Rivera / Wikimedia Commons

Best Buy Co. Inc. (NYSE: BBY) is scheduled to release its fiscal second-quarter earnings report before the markets open on Tuesday. The consensus estimates from Thomson Reuters call for $0.43 in earnings per share (EPS) on $8.4 billion in revenue. In the same period of last year, the retailer posted EPS of $0.49 and $8.53 billion in revenue.

In the previous earnings report, the company issued guidance for this quarter of EPS in the range of $0.38 to $0.42 and for enterprise revenue to fall between $8.35 billion and $8.45 billion.

Best Buy’s chief financial officer, Sharon McCollam, stepped down in mid-June. However, she will remain with the company in an advisory capacity until the end of the fiscal year: January 28, 2017. Corie Barry, a 16-year veteran of Best Buy and its current chief strategic growth officer, is stepping into the CFO role.

In the first quarter, the company said that it delivered better-than-expected revenue, improved profitability and progressed against its fiscal 2017 initiatives. Management noted that although Best Buy reported better-than-expected results in the first quarter, the company did not raise its full year outlook as the first quarter represents less than 15% of full year earnings and at this stage the company has no new material information as it relates to product launches throughout the year.

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A few analysts weighed in on Best Buy prior to the release of the earnings report:

Wedbush reiterated a Buy rating.
Ladernburg Thalmann has an Outperform rating.
Jefferies has a Hold rating.
BTIG reiterated Buy rating.
Morgan Stanley reiterated a Buy rating.
Deutsche Bank reiterated a Buy rating.
Oppenheimer reiterated a Hold rating.
Barclays reiterated a Buy rating with a $45 price target.
Merrill Lynch has a Buy rating.
Credit Suisse has a Hold rating.

So far in 2016, Best Buy has outperformed the broad markets slightly, with the stock up over 10%. However, over the past 52 weeks the stock is only up about 8.5%.

Shares of Best Buy closed Friday at $1.8% at $32.59, with a consensus analyst price target of $32.91 and a 52-week trading range of $25.31 to $39.10. In early trading indications on Monday, the stock was last trading up slightly at $32.70.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.