Electronics retailer Best Buy (NYSE: BBY) will be announcing earnings results this Thursday before market open. Here’s what to expect.
Best Buy beat analysts’ revenue expectations last quarter, reporting revenues of $8.94 billion, up 1.9% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.
Is Best Buy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Best Buy’s revenue to grow 1.5% year on year, in line with the 1.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Best Buy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Best Buy’s peers in the specialty retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Warby Parker delivered year-on-year revenue growth of 9.8%, missing analysts’ expectations by 1%, and Sally Beauty reported flat revenue, in line with consensus estimates. Warby Parker traded down 9.6% following the results while Sally Beauty was up 10.6%.
Read our full analysis of Warby Parker’s results here and Sally Beauty’s results here.
Investors in the specialty retail segment have had steady hands going into earnings, with share prices flat over the last month. Best Buy is down 3.1% during the same time and is heading into earnings with an average analyst price target of $83.40 (compared to the current share price of $85.70).
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