Analyst Outlook for Best Buy, Retail, Said to Be 'Bearish' Ahead of Q3 Earnings Report
Analysts’ sentiment toward Best Buy stock is “very bearish” ahead of the fiscal Q3 earnings report, due Tuesday, wrote Seeking Alpha analyst Rick Pendergraft in a research note Monday. Analysts expect the company to earn $0.85 per share in Q3…
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on revenue of $9.56 billion, vs. $0.78 a year ago. Best Buy posted year-over-year earnings growth of 32 percent in Q2 and has averaged 24 percent per year earnings growth over the last three years, Pendergraft said, but analysts project earnings growth of 16 percent in FY 2019. Sales have grown by an average 2 percent over the last three years, and Q2 sales grew 5 percent, he said. For the year, sales are forecast to grow 1.4 percent. Few stocks have jumped after their earnings reports in the current earnings season, said the analyst, noting Macy’s and Walmart both beat estimates but their shares fell. Seven of 25 analysts rate Best Buy a “buy,” 16 give it a “hold” and two rate it a “sell,” he said. It has been trending higher over the last few years despite slower sales growth, he said.