Best Buy’s Anticipated Earnings Decline
Wall Street analysts predict that Best Buy (BBY) is set to announce quarterly earnings of $2.39 per share, indicating a significant year-over-year decline of 12.1%. Expectations are that the retailer’s revenue will total approximately $13.65 billion, reflecting a decrease of 6.8% compared to the same period last year. Notably, the consensus estimate for earnings per share has remained stable over the past month, highlighting a collective reassessment by analysts regarding their initial forecasts. Prior to an earnings announcement, it is crucial to consider any adjustments made to these earnings estimates, as they can serve as a valuable indicator of expected investor reactions to the stock’s performance.
The Importance of Earnings Estimate Revisions
Research has consistently shown a strong correlation between changes in earnings estimate revisions and the short-term performance of a stock. Investors often rely on consensus earnings and revenue forecasts to measure a company’s quarterly results. However, a detailed analysis of analysts’ predictions for key metrics can provide a more nuanced understanding of the company’s performance. With that in mind, let’s explore the average estimates for some significant metrics related to Best Buy that analysts typically track.
Key Revenue Estimates by Product Category
The analysts’ average forecast for ‘Revenue by Product Category- Domestic- Computing and Mobile Phones’ stands at $5.34 billion, suggesting a year-over-year decline of 5.2%. In terms of ‘Revenue by Product Category- Domestic- Consumer Electronics,’ the expected figure is $3.85 billion, indicating a year-over-year drop of 7.7%. Furthermore, analysts project that ‘Revenue by Product Category- Domestic- Appliances’ will reach $1.32 billion, reflecting a year-over-year decrease of 12.6%. The forecast for ‘Revenue by Product Category- Domestic- Entertainment’ is estimated at $1.18 billion, which signifies an 11.2% decline from the same quarter last year.
Geographic Revenue Projections
For ‘Geographic Revenue- Domestic,’ analysts expect a total of $12.46 billion, marking a year-over-year reduction of 7.1%. Meanwhile, the consensus estimate for ‘Geographic Revenue- International’ is approximately $1.18 billion, representing a decline of 4.7% compared to the previous year’s quarter. Additionally, analysts collectively estimate that the ‘Number of stores – International – Total’ will remain at 160, unchanged from the same quarter last year.
Store Count Expectations
In terms of store count, analysts anticipate that the ‘Number of stores – Domestic – Pacific Sales Stores’ will also stay at 20, consistent with last year’s figure. For ‘Number of stores – International – Canada Best Buy Stores,’ the forecast is 129, slightly up from 128 in the same quarter last year. The consensus for ‘Number of stores – International – Canada Best Buy Mobile Stand-Alone Stores’ is expected to be 31, down from 32 a year earlier. Moreover, analysts predict that the ‘Number of stores – Domestic – U.S. Best Buy Stores’ will total 889, a decrease from 901 reported in the same period last year. Overall, the estimated ‘Number of stores – Domestic – Total’ is projected to be 957, down from 965 in the prior year.
Best Buy’s Recent Stock Performance
In recent trading, Best Buy’s shares have gained 6.3% over the last month, contrasting with a 2.2% decline in the S&P 500 composite. Holding a Zacks Rank of #3 (Hold), BBY is expected to align with the broader market trends in the near future.
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