Best Buy Expected to Post Lower 4Q Revenue Amid Tense Competition -- Earnings Preview

Dow Jones
Mar 03
 

By Kelly Cloonan

 

Best Buy is scheduled to report its fourth-quarter results on Tuesday before the market opens. Here is what you need to know.

 

NET INCOME: The consumer-technology retailer is expected to post a profit of $521.4 million, compared with $117 million the year before, according to FactSet.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at $2.46 a share, compared with $2.58 a share the prior year.

REVENUE: The company is expected to report $13.87 billion in sales, compared with $13.95 billion in the year-ago quarter, according to FactSet.

SAME-STORE SALES: Analysts expect same-store sales to be roughly flat, forecasting growth of 0.1%.

The stock has fallen 17% during the past three months and recently traded around $62.11.

 

WHAT TO WATCH

 

--Best Buy likely had a tough quarter given intense competition during the holidays, UBS analysts say. Walmart sold televisions at a steep discount, while Costco sought to leverage its distribution network to deliver big and bulky items such as appliances and televisions, the analysts say. And Amazon.com is now the largest seller of consumer electronics in the U.S. according to some estimates, they say. "This is not a forgiving set of competitors," they say. "But, we still think Best Buy has a place in the market, especially as it is a key counterpart for the leading consumer electronics vendors."

--Wall Street will be paying close attention to Best Buy's guidance for the year ahead. Truist analysts warned that memory chip shortages could lead to higher prices for consumer electronics, potentially denting Best Buy's unit growth this year.

--Analysts will be watching Best Buy's results for clues around the health of the American consumer. In November, the retailer said shoppers were willing to spend during sales or when there is a new innovation, including the new Windows 11 operating systems and updated gaming consoles. Best Buy also said at the time that people are now replacing computers they bought at the start of the pandemic.

 

Write to Kelly Cloonan at kelly.cloonan@wsj.com

 

(END) Dow Jones Newswires

March 02, 2026 13:56 ET (18:56 GMT)

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