Best Buy reports earnings May 24

What's Happening With BBY View more about BBY >

Best Buy (BBY) will report its first-quarter numbers before the market open on May 24, with the consensus calling for earnings of $0.35 per share. During the same period last year the company earned $0.37 per share, and the stock is up 3.5% on the year.

Technical Analysis

BBY was recently trading at $31.53, down $7.57 from its 12-month high and $6.22 above its 12-month low. Technical indicators for BBY are neutral and the stock is in a tight sideways trend. The stock has recent support above $30.35 and has recent resistance below $32.75. Of the 15 analysts who cover the stock, seven rate it a “strong buy”, six rate it a “hold”, one rates it a “sell”, and one rate it a “strong sell”. The stock receives S&P Capital IQ’s 3 STARS “Hold” ranking.

Analysts' Thoughts

Electronics and appliance retailer Best Buy has been stuck in a sideways pattern over the last two months, and the stock needs a positive report to give it some upwards direction. It has been a hit or miss earnings season for retailers, so current BBY investors should be ready for the possibility of a miss from the company. Despite cracks of weakness in the sector, BBY shares have managed to avoid any major selling pressure during the current earnings season, a big reason being the stock’s current valuation. BBY trades with a P/E of just 12.5, which should limit any downside risk in the event of an earnings miss. While the valuation would cushion the shares to some extent, Wall Street would still drive the stock lower if there are any indications that the company’s turnaround program is losing steam. The last several quarters have seen some nice earnings growth for Best Buy, and analysts peg the company to grow earnings by 3.6% this year, and an additional 6.9% next year. I expect the report to be strong enough to give the stock some positive direction, but current shareholders may want to have an exit plan in place just in case results are weaker than expected.

BBY
About Best Buy Co. Inc.

Best Buy Co Inc is one of the largest consumer electronics retailers in the United States, with product sales representing 10% of the $383 billion retail industry in calendar 2018 based on estimates from the Consumer Technology Association. The company is focused on accelerating online sales growth, improving its multichannel customer experience, launching new in-store and in-home service offerings, optimizing its U.S., Canada, and Mexico retail store square footage, reducing cost of goods sold through supply-chain efficiencies, and further reducing SG&A costs.

  • Last Price:
    $68.39
  • Previous Close:
    $67.62
  • Change:
    $0.77 (1.14%)
  • Open:
    $68.26
  • Volume:
    1,671,148
  • Average Volume (100 Day):
    3,177,480
  • Market Capitalization:
    $18.3 B
  • Day's Range:
    $67.33 - $68.51
  • Dividend Yield:
    2.96%
  • 52-week Range:
    $84 - $47.72
  • P-E:
    12.40
  • EPS:
    $5.46
  • Earnings Date:
    8/27/19
  • Ex Dividend Date:
    6/12/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Specialty Retail
  • Analyst Average Recommendation:
    Moderate Buy

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