2 Years Ago
1 Min Read

Are you waiting for BBY's earnings report? A closer look:



Best Buy Company (BBY) just reported earnings. Lets take a look:

  • Best Buy Co Inc. reported a smaller-than-expected drop in quarterly comparable sales on Tuesday as steep discounts helped soften the blow to electronics demand from rampant inflation
  • Earnings came in at $0.06 per share, beating analyst estimates by 21.26%. 
  • Same-store-sales decreased 12.1% in the second quarter, compared with analysts' estimates of a 12.6% decline
  • Revenue of $13 billion for the quarter, up from $12 billion last year, beating expectations

Analysts think we'll see Best Buy Company check in with an EPS (earnings per share) of on Tuesday. Over the last 90 days, analysts have lowered estimates times and raised them times.

BBY bulls will first be listening for news that the company beat the analysts' estimates. After that they'll want to hear that the company beat these expectations with robust revenues that were higher than expected. Finally they'll want to hear about a positive growth story that helps analysts frame the company's future as one of growth in the following quarters.

Grizzly bears possess a biting force of over 1200 PSI, which is enough to crush a bowling ball or an iron skillet. BBY bears cannot do that, but they can listen for news that the company underperformed analysts' estimates for EPS, Revenues, or future guidance. They'll also want to build negative growth story that frames the company's future as one of deceleration or even decline in revenues over the following quarters.

Regardless of which side of the fence you're on, it's important to note that sometimes the company's earnings report plays less of a role in moving the price than the analysts' estimates. This can be caused by a change in the analysts' estimates based on the Q&A from the conference call with management discussing the earnings report.

Share price moves can have an impact on existing shareholder sentiment. As of August 22 shares of BBY are trading at $79.53. Over the last 52-week period, the price is down -42.4%.