Best Buy (BBY) Reports Q2: Everything You Need To Know Ahead Of Earnings

Electronics retailer Best Buy (NYSE:BBY) will be reporting earnings tomorrow morning. Here’s what you need to know.

Best Buy missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $8.85 billion, down 6.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ earnings estimates but underwhelming earnings guidance for the full year.

Is Best Buy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Best Buy’s revenue to decline 3.5% year on year to $9.25 billion, improving from the 7.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.16 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Best Buy has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Best Buy’s peers in the specialty retail segment, only Sally Beauty has reported results so far. It beat analysts’ revenue estimates by 1.1%, delivering year-on-year sales growth of 1.2%. The stock traded up 8.4% on the results.

Read our full analysis of Sally Beauty’s earnings 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 up 4% during the same time and is heading into earnings with an average analyst price target of $90.4 (compared to the current share price of $88.8).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.