Best Buy (BBY) To Post Q1 Earnings: What Awaits The Stock?

Image: Bigstock

Best Buy Co., Inc. (BBY - Free Report) is likely to register top and bottom-line growth when it reports first-quarter fiscal 2022 numbers on May 27, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $10,374 million, which indicates an increase of 21.2% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has moved up five cents in the past 30 days to $1.36 per share. The consensus mark suggests a significant rise from earnings of 67 cents reported in the year-ago quarter. The company delivered an earnings surprise of 0.6% in the last reported quarter. Notably, this specialty retailer has a trailing four-quarter earnings surprise of 34.5%, on average.

Key Aspects to Note

Best Buy’s top line during the first quarter is likely to have gained from consumers’ inclination toward products that support stay-at-home practices amid the pandemic. In this context, the company has been witnessing enhanced demand for products such as computing devices, at-home fitness equipment, and household appliances. Apart from these, the company’s strong supply chain expertise, flexible store operating model, and ability to shift quickly to digital have been supporting its performance.

Speaking about digital strength, Best Buy’s strong online presence is likely to have remained an upside during the quarter in review. Markedly, the company’s well-chalked delivery systems have been a key aspect in boosting online revenues. In fact, almost all its stores offer same-day delivery services. The company has been on track with adding new functionalities to its curbside pickup services. Such prudent measures are likely to have boosted Best Buy’s online sales during the first quarter. The company has also been expanding its advisory functions, which includes guiding customers to find the right technology solutions and accordingly provide in-home or in-store consultations. Such efforts along with efficient programs like Total Tech Support are likely to have aided the company’s performance in the first quarter.

1 2
View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.