Electronics retailer Best Buy (NYSE: BBY) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Best Buy beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $13.95 billion, down 4.8% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.
Is Best Buy a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Best Buy’s revenue to be flat year on year at $8.80 billion, improving from the 6.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Best Buy has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Best Buy’s peers in the specialty retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Warby Parker delivered year-on-year revenue growth of 11.9%, missing analysts’ expectations by 0.8%, and Sally Beauty reported a revenue decline of 2.8%, falling short of estimates by 2%. Warby Parker traded down 2.2% following the results while Sally Beauty was up 14.4%.
Read our full analysis of Warby Parker’s results here and Sally Beauty’s results here.
There has been positive sentiment among investors in the specialty retail segment, with share prices up 11.4% on average over the last month. Best Buy is up 8.3% during the same time and is heading into earnings with an average analyst price target of $85.03 (compared to the current share price of $72.20).
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