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Best Buy (BBY) Queued Up for Q2 Earnings: What's in the Cards?
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Best Buy Co., Inc. (BBY - Free Report) is likely to register a decline in the top and the bottom line from the respective prior-year quarter’s reported numbers when it reports second-quarter fiscal 2023 results on Aug 30, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $10,242 million, which indicates a decrease of 13.6% from the year-ago quarter’s reported figure. Although the Zacks Consensus Estimate for quarterly earnings has dropped 24.5% in the past 30 days to $1.29 per share, the same suggests a decrease of 56.7% from the year-ago quarter’s tally.
BBY delivered a negative earnings surprise of 1.3% in the last reported quarter. This specialty retailer of consumer products has a trailing four-quarter earnings surprise of 15.5%, on average.
Key Aspects to Note
Best Buy’s quarterly performance is likely to have been hurt by a challenging operating environment, including inflation and softness in consumer demand. On Jul 27, management issued updates on the fiscal second quarter. It said that higher gasoline and food prices are squeezing disposable income, and consumers are compelled to curtail spending on discretionary items, such as electronics. These factors persuaded management to trim comparable sales and operating margin rate forecasts. In addition, any deleverage in SG&A expenses might have been deterrents.
Best Buy envisioned a second-quarter fiscal 2023 comparable sales decline of about 13%. A sales increase of 19.6% was registered in the year-ago period. Management projected non-GAAP operating income rate at 3.7%. Additionally, it expected inventory at the end of the fiscal second quarter to be roughly flat with the year-ago fiscal quarter’s actuals. Management estimated revenues to be 7.5% higher than the pre-pandemic second-quarter fiscal 2020 level.
Nonetheless, Best Buy has been undertaking cost-containment actions for a while to manage profitability. BBY’s focus on developing omni-channel capabilities, including buy online, pickup in-store services, curbside pickup, ship-from-store or employees delivering products to customers, is encouraging.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Best Buy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Best Buy has a Zacks Rank #5 (Strong Sell) at present. Its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +24.88% and a Zacks Rank #3. CASY is expected to register a bottom-line increase from the year-ago fiscal quarter’s actuals when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago fiscal quarter’s reading. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General’s top line is anticipated to have risen from the year-ago fiscal quarter’s finals. The consensus mark for CASY’s revenues is pegged at $4.6 billion, indicating an increase of 44.4% from the figure reported in the year-ago fiscal quarter. CASY's has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. PLAY is likely to register a decline in the bottom line from the prior-year fiscal quarter’s reading when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago fiscal quarter’s number.
Dave & Buster's Entertainment’s top line is expected to have increased from the year-earlier fiscal quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year fiscal quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +0.60% and is Zacks #3 Ranked. CPB is expected to register an increase in the bottom line from the year-earlier fiscal quarter’s actuals when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests an increase of 1.8% from the year-ago fiscal quarter’s reading.
Campbell Soup’s top line is anticipated to have increased from the year-ago fiscal quarter’s finals. The consensus mark for CPB’s revenues is pegged at $1.98 billion, indicating an increase of 5.5% from the figure reported in the year-ago fiscal quarter.
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Best Buy (BBY) Queued Up for Q2 Earnings: What's in the Cards?
Best Buy Co., Inc. (BBY - Free Report) is likely to register a decline in the top and the bottom line from the respective prior-year quarter’s reported numbers when it reports second-quarter fiscal 2023 results on Aug 30, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $10,242 million, which indicates a decrease of 13.6% from the year-ago quarter’s reported figure. Although the Zacks Consensus Estimate for quarterly earnings has dropped 24.5% in the past 30 days to $1.29 per share, the same suggests a decrease of 56.7% from the year-ago quarter’s tally.
BBY delivered a negative earnings surprise of 1.3% in the last reported quarter. This specialty retailer of consumer products has a trailing four-quarter earnings surprise of 15.5%, on average.
Key Aspects to Note
Best Buy’s quarterly performance is likely to have been hurt by a challenging operating environment, including inflation and softness in consumer demand. On Jul 27, management issued updates on the fiscal second quarter. It said that higher gasoline and food prices are squeezing disposable income, and consumers are compelled to curtail spending on discretionary items, such as electronics. These factors persuaded management to trim comparable sales and operating margin rate forecasts. In addition, any deleverage in SG&A expenses might have been deterrents.
Best Buy envisioned a second-quarter fiscal 2023 comparable sales decline of about 13%. A sales increase of 19.6% was registered in the year-ago period. Management projected non-GAAP operating income rate at 3.7%. Additionally, it expected inventory at the end of the fiscal second quarter to be roughly flat with the year-ago fiscal quarter’s actuals. Management estimated revenues to be 7.5% higher than the pre-pandemic second-quarter fiscal 2020 level.
Nonetheless, Best Buy has been undertaking cost-containment actions for a while to manage profitability. BBY’s focus on developing omni-channel capabilities, including buy online, pickup in-store services, curbside pickup, ship-from-store or employees delivering products to customers, is encouraging.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Best Buy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Best Buy has a Zacks Rank #5 (Strong Sell) at present. Its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With Favorable Combination
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +24.88% and a Zacks Rank #3. CASY is expected to register a bottom-line increase from the year-ago fiscal quarter’s actuals when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago fiscal quarter’s reading. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General’s top line is anticipated to have risen from the year-ago fiscal quarter’s finals. The consensus mark for CASY’s revenues is pegged at $4.6 billion, indicating an increase of 44.4% from the figure reported in the year-ago fiscal quarter. CASY's has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. PLAY is likely to register a decline in the bottom line from the prior-year fiscal quarter’s reading when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago fiscal quarter’s number.
Dave & Buster's Entertainment’s top line is expected to have increased from the year-earlier fiscal quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year fiscal quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +0.60% and is Zacks #3 Ranked. CPB is expected to register an increase in the bottom line from the year-earlier fiscal quarter’s actuals when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests an increase of 1.8% from the year-ago fiscal quarter’s reading.
Campbell Soup’s top line is anticipated to have increased from the year-ago fiscal quarter’s finals. The consensus mark for CPB’s revenues is pegged at $1.98 billion, indicating an increase of 5.5% from the figure reported in the year-ago fiscal quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.