Best Buy (BBY) Stock Lower Ahead of Earnings Release

NEW YORK (TheStreet) -- Shares of Best Buy (BBY) are down by 1.46% to $34.47 in mid-morning trading on Wednesday, one day prior to the release of the electronics retailer's fiscal 2016 first quarter earnings results, which analysts are expecting to decline year-over-year.

Best Buy will release its earnings data before the market open on Thursday morning.

The company has been forecast to report earnings of 29 cents per share on revenue of $8.46 billion for the most recent quarter.

For the fiscal 2015 first quarter Best Buy said its non-GAAP earnings were 33 cents per share on revenue of $9.04 billion.

The Richfield, MN.-based retailer sells a variety of electronics and household necessities including tablets, computers, phones, cameras, large and small appliances and home theater entertainment systems, as well as DVDs and video games.

Separately, TheStreet Ratings team rates BEST BUY CO INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BEST BUY CO INC (BBY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 77.1% when compared to the same quarter one year prior, rising from $293.00 million to $519.00 million.
  • BBY's revenue growth trails the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 1.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 72.94% and other important driving factors, this stock has surged by 33.82% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BBY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 50.77% to $1,161.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.66%.
  • You can view the full analysis from the report here: BBY Ratings Report

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