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Best Buy's (BBY) Q4 Earnings Upcoming: What's in the Cards?
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Best Buy Co., Inc. (BBY - Free Report) is likely to register a decline in both top and bottom lines from the respective prior-year quarter’s reported numbers in its fourth-quarter fiscal 2023 results on Mar 2, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $14,752 million, indicating a 9.9% decrease from the year-ago fiscal quarter’s reported figure. Further, the Zacks Consensus Estimate for quarterly earnings has decreased 1 cent in the past 30 days to $2.09 per share, suggesting an above 23.4% plunge from the year-ago fiscal quarter’s tally.
We expect revenues to be down 10.8% from the year-ago fiscal quarter’s level to $14,600.3 million and adjusted earnings to plunge 31.5% to $1.79 per share. Enterprise same-store sales are likely to decrease 9.8% in the quarter under review.
BBY delivered an earnings surprise of 34% in the last reported quarter. This specialty retailer of consumer products has a trailing four-quarter earnings surprise of 13.8%, 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, inflationary pressures and supply-chain issues. Also, any deleverage in SG&A expenses remains a headwind.
Investments in the Totaltech initiatives and increased supply-chain costs are likely to continue putting pressure on BBY’s margins. It has been witnessing lower sales across both its Domestic and International segments for a while.
On its last earnings call, management had projected comparable sales to decline roughly 10% in fiscal fourth quarter. It also forecast the year-over-year sales decline to remain similar to the third quarter levels.
This outlook reflected a major deceleration compared with the pre-pandemic level. It highlighted that the gross margin will be under pressure due to higher promotional activity.
On the positive front, BBY’s focus on boosting its omni-channel services, such as buy online, pickup in-store services, curbside pickup or ship-from-store delivering products to customers, is encouraging. 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 to buy or sell before they’re reported with our Earnings ESP Filter.
Best Buy has an Earnings ESP of -1.17% and a Zacks Rank #3, at present.
Stocks Poised to Beat Earnings Estimates
Here are three more companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +8.53% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement year over year while reporting fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $5.53 suggests an improvement of 2.2% from the year-ago fiscal quarter’s actuals.
Ulta Beauty's top line is expected to rise from the year-earlier fiscal quarter’s finals. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.01 billion, implying an improvement of 10.3% from the prior-year fiscal quarter’s figure. ULTA has a trailing four-quarter earnings surprise of 26.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. DLTR is likely to register top-line growth from the prior-year fiscal quarter’s reported figure while reporting fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.61 billion, suggesting 7.5% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal fourth quarter is pegged at $2.02 per share, suggesting 0.5% growth from the year-ago fiscal quarter’s tally. The Zacks Consensus Estimate has remained stable over the past 30 days. DLTR delivered an earnings beat of 9%, on average, in the trailing four quarters.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is likely to register a bottom-line decrease from the year-ago fiscal quarter’s reported figure while reporting fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has remained stable at $1.64 per share over the past 30 days, suggesting a 42.3% decline from the year-ago fiscal quarter’s reported number.
PVH Corp’s top line is expected to fall from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, suggesting a 3.8% decline from the prior-year fiscal quarter’s reported figure. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
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Best Buy's (BBY) Q4 Earnings Upcoming: What's in the Cards?
Best Buy Co., Inc. (BBY - Free Report) is likely to register a decline in both top and bottom lines from the respective prior-year quarter’s reported numbers in its fourth-quarter fiscal 2023 results on Mar 2, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $14,752 million, indicating a 9.9% decrease from the year-ago fiscal quarter’s reported figure. Further, the Zacks Consensus Estimate for quarterly earnings has decreased 1 cent in the past 30 days to $2.09 per share, suggesting an above 23.4% plunge from the year-ago fiscal quarter’s tally.
We expect revenues to be down 10.8% from the year-ago fiscal quarter’s level to $14,600.3 million and adjusted earnings to plunge 31.5% to $1.79 per share. Enterprise same-store
sales are likely to decrease 9.8% in the quarter under review.
BBY delivered an earnings surprise of 34% in the last reported quarter. This specialty retailer of consumer products has a trailing four-quarter earnings surprise of 13.8%, 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, inflationary pressures and supply-chain issues. Also, any deleverage in SG&A expenses remains a headwind.
Investments in the Totaltech initiatives and increased supply-chain costs are likely to continue putting pressure on BBY’s margins. It has been witnessing lower sales across both its Domestic and International segments for a while.
On its last earnings call, management had projected comparable sales to decline roughly 10% in fiscal fourth quarter. It also forecast the year-over-year sales decline to remain similar to the third quarter levels.
This outlook reflected a major deceleration compared with the pre-pandemic level. It highlighted that the gross margin will be under pressure due to higher promotional activity.
On the positive front, BBY’s focus on boosting its omni-channel services, such as buy online, pickup in-store services, curbside pickup or ship-from-store delivering products to customers, is encouraging. 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 to buy or sell 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 -1.17% and a Zacks Rank #3, at present.
Stocks Poised to Beat Earnings Estimates
Here are three more companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +8.53% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement year over year while reporting fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $5.53 suggests an improvement of 2.2% from the year-ago fiscal quarter’s actuals.
Ulta Beauty's top line is expected to rise from the year-earlier fiscal quarter’s finals. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.01 billion, implying an improvement of 10.3% from the prior-year fiscal quarter’s figure. ULTA has a trailing four-quarter earnings surprise of 26.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. DLTR is likely to register top-line growth from the prior-year fiscal quarter’s reported figure while reporting fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.61 billion, suggesting 7.5% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal fourth quarter is pegged at $2.02 per share, suggesting 0.5% growth from the year-ago fiscal quarter’s tally. The Zacks Consensus Estimate has remained stable over the past 30 days. DLTR delivered an earnings beat of 9%, on average, in the trailing four quarters.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is likely to register a bottom-line decrease from the year-ago fiscal quarter’s reported figure while reporting fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has remained stable at $1.64 per share over the past 30 days, suggesting a 42.3% decline from the year-ago fiscal quarter’s reported number.
PVH Corp’s top line is expected to fall from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, suggesting a 3.8% decline from the prior-year fiscal quarter’s reported figure. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.