Best Buy Set to Announce Q1 Earnings on May 28
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Earnings Announcement Timing: Best Buy is set to release its Q1 earnings report on May 28 before market open, with consensus EPS estimate at $1.23, reflecting a 7% year-over-year increase, which will be a crucial financial indicator in the current economic climate.
- Revenue Expectations: The anticipated revenue for Q1 is $8.83 billion, representing a 0.7% year-over-year growth, indicating that despite facing sales headwinds, the company is striving to maintain revenue growth, showcasing its market adaptability.
- Historical Performance Review: Over the past two years, Best Buy has exceeded EPS estimates 88% of the time and revenue estimates 50% of the time, demonstrating stability in profitability, although the lower exceedance rate for revenue estimates raises concerns.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 4 upward revisions and 10 downward revisions, while revenue estimates have experienced 1 upward revision and 13 downward revisions, reflecting a cautious market sentiment regarding Best Buy's future performance.
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Analyst Views on BBY
Wall Street analysts forecast BBY stock price to rise
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 74.740
Low
60.00
Averages
79.75
High
96.00
Current: 74.740
Low
60.00
Averages
79.75
High
96.00
About BBY
Best Buy Co., Inc. is engaged in personalizing and humanizing technology solutions. The Company has two segments: Domestic and International. The Domestic segment comprises its operations in all states, districts and territories of the United States and its Best Buy Health business and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Geek Squad, Imagine That, Insignia, Lively, My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, lively.com, techliquidators.com and yardbird.com. The International segment comprises all its operations in Canada under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad and TechLiquidators and the domain names bestbuy.ca and techliquidators.ca. The Company’s product categories include computing and mobile phones, consumer electronics, appliances, entertainment, services and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Positive Market Reaction: Following the earnings report, Dell's shares soared 39% in after-hours trading, reflecting strong investor confidence in the company's growth potential and underscoring the market's keen interest in AI-related technologies.
- Defense Contract Boost: This week, Dell secured a $9.7 billion deal with the Pentagon, which not only provides substantial revenue but also strengthens its market position in the government and defense sectors, indicating potential for sustained growth in the future.
- Economic Environment Impact: Despite facing inflationary pressures and a drop in consumer savings rates to the lowest level since 2022, Dell's strong performance suggests resilience in the tech sector, potentially attracting more investor interest in opportunities within this field.
See More
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- Increased AI Revenue Forecast: The company now expects AI revenue to reach $60 billion for 2023, a 20% increase from the previous forecast of $50 billion made in February, reflecting robust market demand and Dell's competitive positioning in the AI sector.
- Defense Contract Boost: Dell secured a $9.7 billion deal with the Pentagon this week, further solidifying its presence in the government and defense markets while providing strong support for future revenue growth.
- Retail Market Dynamics: Despite Dell's success, American Eagle reported a 10% revenue decline, while Gap's comparable sales surged 10%, highlighting a divergence in retail performance that could impact overall consumer confidence.
See More
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- Earnings Beat Expectations: Best Buy reported Q1 revenue of $8.94 billion and earnings of $1.28 per share, surpassing analysts' estimates of $8.8 billion and $1.23 per share, demonstrating that consumer demand is stabilizing despite ongoing economic pressures.
- Strong Gaming Sales: CEO Corie Barry noted that Q1 gaming sales exceeded expectations across major platforms like Nintendo Switch 2, PS5, and Xbox, contributing to a domestic gross merchandise volume of approximately $250 million and overall sales growth above 4%.
- Retail Sentiment Rebounds: On Stocktwits, retail sentiment around Best Buy improved from 'bullish' to 'extremely bullish', with message volume surging 450% in 24 hours, indicating strong investor interest and confidence in the stock.
See More
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- Economic Data Impact: The US April core PCE price index increased by 3.3% year-on-year, meeting expectations, but the unexpected 1.1% decline in April capital goods orders indicates economic recovery fragility, potentially influencing the Fed's monetary policy decisions.
- Rising Unemployment Claims: Initial jobless claims in the US rose by 5,000 to 215,000, exceeding expectations, reflecting weakness in the labor market, which may heighten investor concerns about the economic outlook.
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