S&P 500 (NYSE:SPY) component Best Buy (NYSE:BBY) will unveil its latest earnings on Tuesday, November 20, 2012. Best Buy is a retailer that sells appliances, consumer electronics, home office products, and software.
Best Buy Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 12 cents per share, a decline of 74.5% from the company’s actual earnings for the year-ago quarter. For the year, analysts are projecting net income of $2.83 per share, a decline of 21.2% from last year.
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A Look Back: In the second quarter, profit fell 93.2% to $12 million (4 cents a share) from $177 million (47 cents a share) the year earlier. Revenue fell 7.1% to $10.55 billion from $11.35 billion.
Stock Price Performance: Between September 19, 2012 and November 14, 2012, the stock price had fallen $2.61 (-14.5%), from $17.94 to $15.33. The stock price saw one of its best stretches over the last year between May 18, 2012 and May 29, 2012, when shares rose for seven straight days, increasing 7% (+$1.26) over that span. It saw one of its worst periods between July 2, 2012 and July 17, 2012 when shares fell for 11 straight days, dropping 15.2% (-$3.38) over that span.
Analyst Ratings: There are mostly holds on the stock with 17 of 19 analysts surveyed giving that rating.
On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 1.8% in the third quarter of the last fiscal year, 0.4% in the fourth quarter of the last fiscal year and 6.1%in the first quarter before dropping in the second quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.08 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.15 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5% to $9.45 billion while assets decreased 1.3% to $10.18 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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