Best Buy Earnings Preview: What 3 Firms Are Saying
With Best Buy Co Inc (NYSE: BBY) set to release earnings on Thursday before the market open, now is a good time to take a look at what Wall Street is expecting from the electronics retailer.
Wall Street consensus for Best Buy is currently earnings per share of $0.29 on $8.49 billion in revenue. However, not all analysts see eye-to-eye on Best Buy.
Here’s a look at what three firms have to say about the company ahead of earnings.
Wedbush expects Best Buy’s numbers will come in below consensus estimates due in part to the closing of Canadian stores. Wedbush predicts that Best Buy will close 66 Future Shop stores, which currently generate $1 billion in annual revenue as part of its Canadian consolidation process. Analysts highlight Best Buy’s intention to spend $200 million this year on Canada and an additional $160 million in the next two years to revitalize overall operations.
Wedbush predicts EPS of $0.26 on $8.24 billion in revenue.
The firm has a Neutral rating on Best Buy and a $37 price target for the stock.
Related Link: Why Best Buy Is A Classic 'Headline Risk'
B. Riley & Co
B. Riley has a slightly more positive view on Best Buy. The firm is calling for a “modest revenue decline” in the quarter driven by forex weakness, but believes that guidance will be much more important than “transient” Q1 earnings disruptions.
B. Riley has a Buy rating on BestBuy and a $47 target for the stock.
UBS analysts agree that guidance for the second half of 2015 will be the key to this earnings report for Best Buy. They are calling for a slight earnings miss of $0.27 per share for Q1.
UBS has a Neutral rating on Best Buy and a $40 target for the stock.
Latest Ratings for BBY
|Aug 2016||Raymond James||Maintains||Buy|
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