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Best Buy Co., Inc. (BBY - Free Report) is slated to report third-quarter fiscal 2017 results on Nov 17. In the previous quarter, the company surpassed the Zacks Consensus Estimate by 35.7%. Notably, the company has surpassed earnings estimates in all the trailing four quarters, with an average beat of 22%. Let’s see how things are shaping up prior to this announcement.

Zacks Model Shows Likely Earnings Beat

Our proven model shows that Best Buy is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. The Most Accurate estimate stands at 49 cents, while the Zacks Consensus Estimate is pegged at 47 cents. So the ensuing difference – the Earnings ESP – is of +4.26%. A positive ESP combined with the company’s Zacks Rank #2, makes us reasonably confident of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors at Play

Best Buy has been posting better-than-expected results in the last 15 quarters and the trend is expected to continue in third-quarter fiscal 2017. Best Buy is leaving no stone unturned to attract consumers and attain incremental revenues, as is evident from its strategic action of opening "Samsung Experience Shops" within its stores. For the third quarter, management expects Enterprise revenues between $8.8 billion and $8.9 billion, reflecting a flat to 0.1% increase from the prior year, while comps are expected to increase nearly 1%.

Improvement in online comparable sales, driven by higher traffic and conversion rates, is driving the company’s top and bottom lines. In the previous quarter, the company reported a 23.7% increase in online comparable sales, on the back of improved traffic and conversion rates. The company is investing extensively to upgrade its operations with special focus on developing omni-channel capacities and cementing its relationship with vendors.

However, decline in international revenues remains a major concern for Best Buy for quite some time now. In the second quarter, international sales were primarily marred by the negative impact of foreign currency exchange rate.

BEST BUY Price, Consensus and EPS Surprise

BEST BUY Price, Consensus and EPS Surprise | BEST BUY Quote

Stocks Likely to Beat Earnings Estimates

Here are some stocks you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:

Hibbett Sports, Inc. (HIBB - Free Report) has an Earnings ESP of +4% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +6.06% and a Zacks Rank #3.

Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3.

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