Best Buy Co., Inc. ( BBY - Analyst Report ) has been on a tear, soaring past the market by 30% to 40% over the past few months. Analysts are bullish on earnings, revising fiscal year forecasts from $2.37 per share to $2.77.

Company Description

Best Buy is a well-known multinational retailer of consumer electronics, home office products, entertainment software, appliances, and related services in the United States, Canada, Europe, Mexico and China. Best Buy family of brands and partnerships collectively generates more than $40 billion annual revenue.

Solid Performance and Strong Fundamentals

The company recently posted fiscal fourth-quarter earnings of $1.61 per share, surpassing the consensus estimate by 14%. Revenue jumped 10% year-over-year, though comparable store sales dipped by 5%.

“We prepared for reduced consumer spending, and we were pleased when the quarter finished stronger than it began,” said Brad Anderson, chief executive officer and vice chairman of Best Buy. “This company continues to innovate and take market share because of our culture, our talented employees and our commitment to serving customers.”

Management added that the company responded quickly and effectively to the rapid changes in the macro-economic climate, is addressing the challenging demand environment and continues to see tremendous opportunities

Upbeat Projections and a Rising Share Price

Best Buy also pegged its fiscal 2010 EPS Outlook of $2.50 to $2.90

Analysts are bullish on earnings, revising forecasts from last month's $2.37 per share to $2.77 for the year ending February 2010.

Shares of BBY have been on a tear, soaring past the market by 30% to 40% over the past few months.

Favorable Industry Comparisons

Best Buys offers an industry-leading dividend yield of 1.5%. The company’s return on equity (ROE) of 26% topes the industry average of 19. BBY’s earnings per share are expected to grow 13% over the next 3 – 5 years, which is in line with the industry average.