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Best Buy Co., Inc. (BBY), headquartered in Richfield, Minnesota, retails consumer electronics, home office products, entertainment software, appliances, and related services through its retail stores, as well as its website. Valued at $19.7 billion by market cap, the company also retails pre-recorded home entertainment products through retail stores. The retail giant is expected to announce its fiscal third-quarter earnings for 2024 on Tuesday, Nov. 19.
Ahead of the event, analysts expect BBY to report a profit of $1.30 per share on a diluted basis, up marginally from $1.29 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect BBY to report EPS of $6.28, down 1.4% from $6.37 in fiscal 2024. However, its EPS is expected to rise 9.6% year over year to $6.88 in fiscal 2026.
BBY stock has underperformed the S&P 500’s ($SPX) 41.7% gains over the past 52 weeks, with shares up 39.7% during this period. However, it outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY)33.9% gains over the same time frame.
Best Buy's strong performance can be attributed to management's positive outlook on the industry, which they believe will continue to stabilize throughout the fiscal year. The company has made significant cost-cutting efforts, streamlined management, and focused on selling higher-margin products and services. Best Buy's focus on growing its membership and services business has also helped increase margins. Despite lower consumer demand, Best Buy's performance has improved, indicating a positive trend in the company's performance.
On Aug. 29, BBY shares closed up more than 14% after reporting its Q2 results. Its adjusted EPS of $1.34 was better than the consensus of $1.16. BBY’s revenue declined 3.1% year over year to $9.3 billion. The company raised its full-year adjusted EPS forecast to $6.10 to $6.35, and expects its revenue to be between $41.3 billion and $41.9 billion.
Analysts’ consensus opinion on BBY stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 11 advise a “Strong Buy” rating, 11 give a “Hold” rating, and one recommends a “Moderate Sell.” BBY’s average analyst price target is $105.50, indicating a potential upside of 17.3% from the current levels.
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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
