Best Buy Co., Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Best Buy Co., Inc. (NYSE:BBY) will unveil its latest earnings on Tuesday, September 13, 2011. Best Buy is a retailer that sells appliances, consumer electronics, home office products and software.

Best Buy Co., Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 54 cents per share, a decline of 10% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up, but has dropped from 55 cents during the last month. For the year, analysts are projecting profit of $3.49 per share, a rise of 1.7% from last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 35 cents per share against the mean estimate of 33 cents. In the prior quarter, the company reported profit of $1.98.

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Wall St. Revenue Expectations: On average, analysts predict $11.53 billion in revenue this quarter, a rise of 1.7% from the year ago quarter. Analysts are forecasting total revenue of $52.2 billion for the year, a rise of 3.8% from last year’s revenue of $50.27 billion.

Analyst Ratings: Analysts seem relatively indifferent about Best Buy with 14 of 21 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income fall in each of the last three quarters. In first quarter, net income fell 12.3% from the year earlier, while the figure fell 16.4% in the fourth quarter of the last fiscal year and 4.4% in the third quarter of the last fiscal year.

A year-over-year revenue increase in the first quarter snaps a streak of two consecutive quarters of revenue declines. Revenue rose 1.4% in the first quarter and fell 1.8% in the fourth quarter of the last fiscal year and 1.1% in the third quarter of the last fiscal year.

Competitors to Watch: CONN’S, Inc. (NASDAQ:CONN), RadioShack Corporation (NYSE:RSH), hhgregg, Inc. (NYSE:HGG), GameStop Corp. (NYSE:GME), Apple Inc. (NASDAQ:AAPL), Sears Holdings (NASDAQ:SHLD), Systemax (NYSE:SYX), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), Overstock.com (NASDAQ:OSTK) and Funtalk China Hldgs. Ltd. (NASDAQ:FTLK).

Stock Price Performance: During July 12, 2011 to September 7, 2011, the stock price had fallen $6.60 (-21.2%) from $31.15 to $24.55. The stock price saw one of its best stretches over the last year between September 8, 2010 and September 20, 2010 when shares rose for nine-straight days, rising 14.3% (+$4.70) over that span. It saw one of its worst periods between July 26, 2011 and August 2, 2011 when shares fell for six-straight days, falling 9.6% (-$2.87) over that span. Shares are down $9.41 (-27.7%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

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