Analysts Anticipate Quarterly Earnings Decline for Best Buy
Wall Street experts predict that Best Buy (BBY) is set to announce quarterly earnings of $1.09 per share, marking a 9.2% decrease compared to the same period last year. Revenue is projected to reach $8.77 billion, reflecting a slight drop of 0.9% year-over-year. Notably, there has been a 0.2% uptick in the consensus earnings per share (EPS) estimate over the past month, indicating that analysts have adjusted their forecasts upward during this timeframe.
The Importance of Earnings Estimate Revisions
Before a company reveals its earnings, it’s essential to consider any adjustments in earnings estimates. Such revisions are critical indicators that can influence how investors respond to the stock after the earnings announcement. Research has consistently shown a significant correlation between the trends in earnings estimate changes and the short-term performance of a stock’s price. Investors often rely on consensus earnings and revenue estimates to gauge quarterly performance, but delving into specific analyst projections can provide deeper insights.
Best Buy’s Revenue Projections by Product Category
Analysts have forecasted that revenue from the Domestic Computing and Mobile Phones category will hit $3.53 billion, indicating a year-over-year decrease of 1.7%. For the Domestic Consumer Electronics segment, the expected revenue stands at $2.36 billion, which reflects a minor decline of 0.1% from the previous year. Furthermore, the Domestic Appliances category is estimated to generate $1.07 billion, showing a 2.2% drop compared to the same quarter last year.
In the Domestic Entertainment sector, revenues are anticipated to reach $508.85 million, representing a 2.1% decline from the prior year. The overall Domestic Geographic Revenue is expected to total $8.11 billion, which signifies a 1.1% decrease year-over-year. On the international front, analysts predict that Geographic Revenue will amount to $639.25 million, down 0.7% from the year-ago quarter.
Store Count Projections for Best Buy
Analysts estimate that the total number of international stores will remain steady at 160, the same as last year. For the overall store count, a prediction of 1,114 stores has been made, which is a slight decrease from the 1,117 reported in the same quarter last year. The number of Domestic Yardbird Stand-Alone Stores is expected to decline from 23 to 21, while the count of U.S. Best Buy Outlet Centers is projected to increase from 23 to 25.
Additionally, the estimate for International Canada Best Buy Mobile Stand-Alone Stores is set at 31, down from 32 last year, and the total number of Canada Best Buy Stores is projected to reach 129, slightly up from the 128 reported in the same quarter last year.
Best Buy’s Stock Performance Compared to the Market
Over the past month, shares of Best Buy have experienced a 7.2% increase, while the S&P 500 composite index has risen by 10.7%. Currently, Best Buy holds a Zacks Rank of #4 (Sell), indicating a potential underperformance relative to the broader market in the near term.
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