Best Buy Co. Inc.

Best Buy Co. Inc. (BBY - Analyst Report) is seeing bullish estimates ahead of reporting next week. Analysts are calling for fiscal year earnings of $2.77 per share, up from the 3 months-ago forecasts of $2.35.

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 generate more than $40 billion of annual revenue.

Upward Estimate Revisions Ahead of Reporting

The retailer is seeing bullish estimates ahead of reporting next week. Analysts are calling for earnings of $2.77 per share for the year ending February 2010, up from the 3 months-ago forecasts of $2.35. For the following year, the consensus projection of $3.07 per share was increased from $2.59 over the past 3 months.

Analysts' first-quarter earnings forecasts of 33 cents per share are above the 3 months-ago level of 27 cents. Best Buy is scheduled to release fiscal first-quarter results on June 16.

A Solid Fourth Quarter

The company 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.

Favorable Industry Comparisons

Best Buys offers an industry-leading dividend yield of 1.4%. The company's return on equity (ROE) of 26% tops the industry average of 22.