Yahoo Finance Best Buy's (BBY) Q1 Earnings Coming Up: What's in the Cards?
Best Buy Co., Inc. BBY is likely to register a decline in the top and the bottom lines from the prior-year quarter’s reported numbers in its first-quarter fiscal 2024 results on May 25, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $9,521 million, indicating a 10.6% decrease from the year-ago quarter’s reported figure. Further, the consensus estimate for quarterly earnings has increased 1 cent in the past seven days to $1.12 per share, suggesting a 28.7% plunge from the year-ago quarter’s actual.
We expect revenues to be down 10.5% from the year-ago quarter’s reported level to $9,531.9 million and adjusted earnings to plunge 40.2% to 94 cents per share. Enterprise same-store sales are likely to decrease 10.1% in the quarter under review.
BBY delivered an earnings surprise of 24.9% in the last reported quarter. This specialty retailer of consumer products has a trailing four-quarter earnings surprise of 20%, on average.
Key Aspects to Note
Best Buy’s quarterly performance is likely to have been affected by a challenging operating environment, including higher promotional activity and inflationary pressures. Any deleverage in SG&A expenses is expected to have been a headwind. Investments in the Totaltech initiatives and lower product margin rates are anticipated to have continued putting pressure on BBY’s margins. It has been witnessing lower sales across its Domestic and International segments for a while.
On its last earnings call, management expected immense pressure on comparable sales in the fiscal first quarter and anticipated the metric to fall 10%, similar to the revenue trends in the first four weeks of the first quarter. It forecast the operating margin to decrease as lower as revenue delevers on SG&A, similar to the prior year.
On the positive front, BBY’s focus on boosting its omnichannel services, such as buy online, pickup in store services, curbside pickup or ship-from-store delivering products to customers, has been encouraging. The company has been making significant headway in the health space. Best Buy’s Totaltech program also bodes well.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Best Buy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Best Buy Co., Inc. Price and EPS Surprise
Best Buy Co., Inc. price-eps-surprise | Best Buy Co., Inc. Quote
Best Buy has an Earnings ESP of +2.13% and a Zacks Rank #4 (Sell) at present.
Stocks Poised to Beat Earnings Estimates
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
American Eagle Outfitters AEO currently has an Earnings ESP of +9.81% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to report bottom-line growth when it releases first-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings stands at 17 cents per share, indicating an increase of 6.3% from the year-ago quarter’s reported level.
The company’s revenues are anticipated to rise year over year. The consensus mark for the same is pegged at $1.06 billion, implying a 0.8% improvement from that reported in the prior-year period.
Casey's General Stores CASY currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pinned at $1.61 per share, indicating a rise of 0.6% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to decrease year over year. The consensus mark for the same stands at $3.42 billion, indicating a deterioration of 1.2% from the year-ago quarter’s actual. CASY has a trailing four-quarter average earnings surprise of 9.9%.
lululemon athletica LULU currently has an Earnings ESP of +1.97% and a Zacks Rank of 3. LULU is likely to record top-line growth when it reports first-quarter fiscal 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $1.9 billion, indicating a 19.5% improvement from the prior-year quarter’s actual. The consensus mark for earnings stands at $1.93 per share, implying a 30.4% increase from that reported in the comparable period of 2022. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
