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Best Buy's (BBY) Q2 Earnings Coming Up: What's in the Offing?
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Best Buy Co., Inc. (BBY - Free Report) is likely to register a decline in both the top and the bottom lines from the respective prior-year quarter’s reported numbers in its second-quarter fiscal 2024 results on Aug 29 before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $9,521 million, indicating a 7.8% decrease from the year-ago fiscal quarter’s reported figure. Further, the consensus estimate for quarterly earnings has decreased 1 cent in the past seven days to $1.06 per share, suggesting a 31.2% plunge from the year-ago fiscal quarter’s tally.
BBY delivered an earnings surprise of 2.7% in the last reported quarter. This specialty retailer of consumer products has a trailing four-quarter earnings surprise of 20.9%, 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. Also, any deleverage in SG&A expenses is expected to have remained a headwind. Investments in the Totaltech initiatives are likely to add up to costs and pressure 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 cited that it expects the macro environment to continue to pressurize demand. It anticipated comparable sales (comps) to fall in the band of 6-8% for the fiscal second quarter. We expect enterprise comps to decrease 7.1% in the quarter under review. Further, we anticipate the Domestic unit’s revenues to decline 8.6% and the International unit’s revenues to slip 5.6% during the quarter under review.
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, is encouraging. The company has also been making significant headway in the health space. Best Buy’s Totaltech program and cost-optimization initiatives also bode 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.
The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank of 2. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.2 million, calling for growth of 13.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a decline of 17.1% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
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Best Buy's (BBY) Q2 Earnings Coming Up: What's in the Offing?
Best Buy Co., Inc. (BBY - Free Report) is likely to register a decline in both the top and the bottom lines from the respective prior-year quarter’s reported numbers in its second-quarter fiscal 2024 results on Aug 29 before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $9,521 million, indicating a 7.8% decrease from the year-ago fiscal quarter’s reported figure. Further, the consensus estimate for quarterly earnings has decreased 1 cent in the past seven days to $1.06 per share, suggesting a 31.2% plunge from the year-ago fiscal quarter’s tally.
BBY delivered an earnings surprise of 2.7% in the last reported quarter. This specialty retailer of consumer products has a trailing four-quarter earnings surprise of 20.9%, 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. Also, any deleverage in SG&A expenses is expected to have remained a headwind. Investments in the Totaltech initiatives are likely to add up to costs and pressure 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 cited that it expects the macro environment to continue to pressurize demand. It anticipated comparable sales (comps) to fall in the band of 6-8% for the fiscal second quarter. We expect enterprise comps to decrease 7.1% in the quarter under review. Further, we anticipate the Domestic unit’s revenues to decline 8.6% and the International unit’s revenues to slip 5.6% during the quarter under review.
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, is encouraging. The company has also been making significant headway in the health space. Best Buy’s Totaltech program and cost-optimization initiatives also bode 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 -4.79% and a Zacks Rank of 2, 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 - Free Report) currently has an Earnings ESP of +8.52% 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 register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank of 2. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.2 million, calling for growth of 13.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a decline of 17.1% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.