Best Buy Co., Inc. (NYSE:BBY) is a leading retailer specializing in consumer electronics, appliances, and related services. The company operates in a competitive market, with rivals like Amazon and Walmart. Best Buy is set to release its fourth-quarter earnings on March 4, 2025.
Analysts expect Best Buy to report an EPS of $2.41, a decrease from $2.72 in the same quarter last year. This decline reflects a challenging retail environment. Revenue is projected to be $13.7 billion, down from $14.65 billion a year earlier. The previous quarter's weaker-than-expected earnings led to a 2% drop in Best Buy's share price, closing at $88.62.
Despite the anticipated decline, some analysts remain optimistic. Telsey Advisory Group's Joseph Feldman maintains an Outperform rating with a $110 price target, while Morgan Stanley's Simeon Gutman holds an Equal-Weight rating. The consensus EPS estimate has remained unchanged over the past 30 days, indicating stable analyst expectations.
Best Buy's financial metrics provide insight into its market valuation. The company has a P/E ratio of 15.21, a price-to-sales ratio of 0.46, and an enterprise value to sales ratio of 0.54. These figures suggest how the market values Best Buy's earnings and sales. The debt-to-equity ratio of 1.32 indicates the company's reliance on debt for financing.
The upcoming earnings report could significantly impact Best Buy's stock price. A positive earnings surprise might boost the stock, while a miss could lead to a decline. The sustainability of any price changes will depend on management's discussion of business conditions during the earnings call.
