S&P 500 (NYSE:SPY) component Best Buy (NYSE:BBY) will unveil its latest earnings on Tuesday, August 21, 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 net income of 31 cents per share, a decline of 34% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 36 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 32 cents during the last month. Analysts are projecting profit to rise by 6% compared to last year’s $3.61.
Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of 72 cents per share, and the previous quarter, it had net income of $2.50.
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A Look Back: In the first quarter, profit rose 16.2% to $158 million (46 cents a share) from $136 million (35 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.1% to $11.61 billion from $10.94 billion.
Stock Price Performance: Between May 21, 2012 and August 17, 2012, the stock price rose $0.74 (4.11%), from $18.02 to $20.27. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011, when shares rose for eight straight days, increasing 16.7% (+$3.70) 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 build on four-straight revenue increases heading into this earnings announcement. Revenue rose 0.1% in the second quarter of the last fiscal year, 1.8% in the third quarter of the last fiscal year and 0.4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.15 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 1.16 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 0.8% to $9 billion while assets decreased 0.5% to $10.32 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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