Core Viewpoint - Best Buy Co. Inc. is facing a critical test as it prepares to report its third-quarter fiscal 2026 earnings, focusing on whether its high-margin advertising business can offset profitability pressures from lower-margin hardware sales [1] Group 1: Sales Performance and Expectations - Management and analysts expect the company to maintain positive sales momentum from the second quarter, which was its best performance in three years [2] - CFO Matt Bilunas has guided for third-quarter comparable sales growth to mirror the previous quarter's 1.6%, indicating a trend towards the higher end of the full-year revenue guidance of $41.1 billion to $41.9 billion [3] Group 2: Market Dynamics and Challenges - The primary growth drivers include a "replacement cycle" in computing due to aging laptops and demand for the new "Switch 2" gaming console [4] - However, the sales mix is shifting towards lower-margin hardware, which negatively impacts gross profit rates compared to service-heavy revenue [4] Group 3: Profitability Outlook - Management expects the adjusted operating income rate to remain flat year-over-year at approximately 3.7% [5] - Recent gross margin declines have been noted, with the current rate at 23.2% [6] Group 4: Advertising Business Potential - Analysts suggest that Best Buy's retail media network, "Best Buy Ads," is an underappreciated asset, with potential profits estimated at $250 million in 2025, which could help mitigate hardware margin erosion [6] Group 5: Investor Sentiment and Stock Performance - A consensus price target of $85.32 suggests a ~16% upside, contingent on the growth of the high-margin ad business to offset hardware costs [7] - The stock closed at $76.45, up 3.62% on the last trading day, but has declined by 14.62% over the past year and 11.28% year-to-date [7]

US stocks surged on Monday, heading toward a rebound to start the shortened Thanksgiving trading week as US policymakers buoyed hopes for an interest-rate cut in December. The tech-heavy Nasdaq Composite (^IXIC) was up roughly 2%, and the S&P 500 (^GSPC) advanced more than 1.2%, as Wall Street stocks started to extend Friday's bounce. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, put on 0.6%. Stocks are aiming for further recovery from the pullback that has cooled this year’ ...

Market Overview - US stock futures rose as investors anticipate a market turnaround in the Thanksgiving trading week, following a recent pullback in AI-driven stocks [1] - Major indexes have experienced notable losses in November, with the S&P 500 down 3.5% month-to-date and the Nasdaq Composite down 6.1% [2][3] Economic Indicators - The Federal Reserve Bank of New York president suggested a potential rate cut in December, contributing to Friday's market rebound [2] - Upcoming economic data releases include producer prices and retail sales for September, which are expected to provide insights into the economic landscape [4] Earnings Reports - The earnings season continues with key releases from companies such as Alibaba Holdings, Dell Technologies, and retailers like Kohl's and Best Buy during the holiday-shortened week [5]

Group 1: Earnings Reports - Retailers such as Burlington Stores, Best Buy, and Kohl's are set to report earnings next week, alongside tech giant Dell [1] - Zoom is expected to report earnings on Monday, with competition from Microsoft's Teams noted, but a decent quarter is anticipated [2] - A variety of retailers including Kohl's, Best Buy, Burlington Stores, Dick's Sporting Goods, and Abercrombie & Fitch will report on Tuesday, with mixed expectations [4] Group 2: Economic Indicators - Retail sales figures and pending home sales data are expected to be soft, which could be beneficial for Wall Street as it may lead to Federal Reserve interest rate cuts [3] Group 3: Company Insights - Cramer expressed optimism about Dell's earnings and management, while being less positive about HP [4] - Dick's Sporting Goods is expected to perform well due to its recent acquisition of Foot Locker, gaining access to popular sneaker brands [4] - Deere is anticipated to report on Wednesday, with its stock viewed positively due to government subsidies benefiting the farming equipment sector [5]

Core Viewpoint - Analysts expect Best Buy to report quarterly earnings of $1.31 per share, reflecting a year-over-year increase of 4% and revenues of $9.58 billion, up 1.4% from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised upward by 0.4% over the past 30 days, indicating a collective reassessment by analysts [1][2] Revenue Estimates by Product Category - Revenue from Domestic Computing and Mobile Phones is estimated at $4.04 billion, a decrease of 0.5% year-over-year [4] - Revenue from Domestic Consumer Electronics is projected at $2.47 billion, an increase of 1.8% year-over-year [4] - Revenue from Domestic Appliances is expected to be $1.05 billion, down 0.6% year-over-year [5] - Revenue from Domestic Entertainment is forecasted at $484.72 million, up 1.2% from the prior year [5] Geographic Revenue Estimates - Domestic Geographic Revenue is anticipated to reach $8.76 billion, reflecting a 0.8% increase from the previous year [5] - International Geographic Revenue is projected at $786.21 million, indicating a 5.1% increase year-over-year [6] Store Count Projections - The total number of International stores is expected to be 156, down from 160 a year ago [6] - The number of Domestic Best Buy stores is projected to be 883, down from 889 year-over-year [8] - The total number of Domestic stores is estimated at 948, compared to 957 a year ago [8] Stock Performance - Over the past month, Best Buy shares have declined by 8.6%, while the Zacks S&P 500 composite has decreased by 0.3% [9]

Core Viewpoint - Best Buy is expected to report a year-over-year increase in earnings and revenues for the quarter ended October 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $1.31 per share, reflecting a +4% change year-over-year, and revenues of $9.56 billion, which is a 1.2% increase from the previous year [3]. - The consensus EPS estimate has been revised 0.4% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - Best Buy has an Earnings ESP of +2.04%, suggesting analysts are optimistic about the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, indicating a neutral outlook, but the combination of a positive Earnings ESP and this rank suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Best Buy exceeded the expected earnings of $1.22 per share by delivering $1.28, resulting in a surprise of +4.92% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Best Buy is positioned as a strong candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [15][17].

Core Insights - Best Buy Co., Inc. has significantly underperformed the broader market, with a 13% decline over the past year compared to a 14.1% increase in the S&P 500 Index [2] - The company's stock has also lagged behind the SPDR S&P Retail ETF, which gained about 1% over the same period [3] - Factors contributing to this underperformance include increased online competition and a normalization of gadget spending post-pandemic [4] Financial Performance - For Q2, Best Buy reported an adjusted EPS of $1.28, exceeding Wall Street expectations of $1.22, and revenue of $9.4 billion, surpassing forecasts of $9.2 billion [4] - The company anticipates full-year adjusted EPS between $6.15 and $6.30, with revenue expected to range from $41.1 billion to $41.9 billion [4] - Analysts predict a 1.9% decline in EPS for the current fiscal year, estimating it at $6.25 on a diluted basis [5] Analyst Ratings and Price Targets - Among 24 analysts covering Best Buy, the consensus rating is a "Moderate Buy," with eight "Strong Buy" ratings, 15 "Holds," and one "Moderate Sell" [5] - Truist Financial Corporation has maintained a "Hold" rating and raised the price target to $79, indicating a potential upside of 1.7% from current levels [6] - The mean price target of $80.79 suggests a 4% premium, while the highest target of $95 indicates a potential upside of 22.3% [6]

Core Insights - Best Buy Co., Inc. has a market capitalization of $17.5 billion and operates over 1,000 stores across the U.S., Canada, and Mexico, offering a variety of consumer electronics and services [1] - The company is expected to announce its fiscal Q3 2026 earnings soon, with analysts predicting an adjusted EPS of $1.30, reflecting a 3.2% increase from the previous year [1] - For fiscal 2026, an adjusted EPS of $6.24 is anticipated, representing a 2% decline from $6.37 in fiscal 2025, but expected to grow to $6.74 in fiscal 2027 [2] Stock Performance - Best Buy shares have decreased by 10.6% over the past 52 weeks, underperforming the S&P 500 Index, which gained 18.4%, and the Consumer Discretionary Select Sector SPDR Fund, which returned 20.1% [3] - On October 13, Best Buy shares surged by 8.8% due to easing U.S.–China trade tensions, which positively impacted investor sentiment and benefited retailers reliant on Chinese imports [4] Analyst Ratings - The consensus view on Best Buy stock is cautiously optimistic, with a "Moderate Buy" rating; among 24 analysts, 8 recommend "Strong Buy," 15 suggest "Hold," and 1 advises "Moderate Sell" [5] - The stock currently trades above its mean price target of $80.16, with the highest target of $95 indicating a potential premium of 14.6% from current market prices [5]

Group 1 - Best Buy (BBY) stock is currently near a buy zone as tensions with China show signs of easing [1] - The retail giant has made efforts to reduce reliance on Chinese imports but remains sensitive to tariff policy changes [1] - If the Trump administration acts quickly on tariffs, Best Buy could benefit significantly [1] Group 2 - Meta Platforms has launched its third generation of smart glasses, with Apple and Google also preparing to enter the market [2] - Retailers are experiencing uncertainty due to Amazon and other retail earnings, with concerns about tariffs affecting summer spending [4] - Best Buy delivered a mixed Q1 report and cut its outlook due to the impact of Trump tariffs [4]

Core Insights - The company reported a solid performance in Q3 2025, with revenue increasing by +34.6% on a reported basis and +1.6% on a like-for-like (LFL) basis compared to Q3 2024, driven by strong growth in services and online sales [4][2][5] - The outlook for 2025 has been confirmed, with expectations for a comparable operating margin rate to increase by 15 basis points to 2.0% by December 31, 2025 [23][6] Financial Performance - Q3 2025 revenue reached €2,488.3 million, marking a +34.6% increase on a reported basis and a +1.6% increase on a like-for-like basis compared to Q3 2024 [4][5] - For the first nine months of 2025, revenue totaled €6,968.1 million, up +33.0% on a reported basis and +1.0% on a like-for-like basis compared to the same period in 2024 [5][6] - The gross margin rate increased by +50 basis points compared to the end of September 2024, primarily due to the growing contribution from services [5][6] Sales Channels - Online sales rose by +7.6% compared to the first nine months of 2024, representing 20% of the Group's total sales [6][8] - Omnichannel sales, particularly Click & Collect, also saw an increase during this period [6] Geographic Performance - In France, LFL revenue increased by +0.9% for the first nine months of 2025, with a dynamic third quarter showing +1.7% growth [12][15] - The Rest of Europe experienced a +1.0% increase in LFL revenue for the first nine months of 2025, with notable growth in Portugal (+6.5%) and Spain (+6.2%) [15][12] Product Categories - Services continued to show solid growth across most regions, while domestic appliances and consumer electronics faced mixed results [9][11] - The launch of the Switch 2 console contributed positively to editorial products, although book sales declined due to a sluggish market [10][11] Strategic Initiatives - The company is expanding its presence in Portugal with the launch of the Darty brand and plans to open over 30 stores by 2030 [14][15] - A new logistics and after-sales service platform has been inaugurated in France to enhance customer experience and support growth in subscriptions [18][19]