Best Buy Q4 Earnings Preview

Best Buy Co Inc BBY is scheduled to report Q4 earnings Tuesday morning and the Street expected EPS of $1.35 on revenues of $14.35 billion.

If Best Buy reports in line with consensus for Q4, it will have experienced a nearly 1 percent decline in sales from the prior year period. Amid concerns of revenues being under pressure, the stock was still up 3.67 percent over the past three months and had traded in a range between $34 and nearly $40.

In January, JP Morgan issued a note projecting that comps will be in the range of flat to low negative single digits for the first half of the current fiscal year. The biggest issue for Best Buy was price competition, according to analyst Rod Hall.

In February, however, Oppenheimer analyst Brian Nagel upgraded the firm's rating from Perform to Outperform and thought "the worst is likely over" for the retailer. Nagel also set a $43 price target on the stock.

Looking ahead, consensus for Q1 EPS was $0.31 on revenues of $8.73 billion which would be a sales decline of 3.4 percent compared to the year-ago period.

Ahead of its earnings release, Best Buy closed Monday at $38.63, up 1.4 percent.