Best Buy Co. Inc. (NYSE:BBY) is slated to report second quarter 2020 earnings results on Thursday, August 29, before the market opens. Analysts estimate the company will report earnings of $0.99 per share on revenue of $9.56 billion.
This will be the first quarterly earnings release under the leadership of the new CEO, Corie Barry, who took over the role in June. It will be worth noting whether the company will roll out any strategic changes or new plans to drive growth going forward.
Best Buy faces tough competition from e-commerce players
like Amazon (NYSE: AMZN) and the company has been seeing a declining trend in comparable
sales. This trend can be expected to continue in the second quarter. The
company is also likely to see impacts from the US-China trade war and the
resultant tariffs.
However, the company’s ongoing initiatives to drive growth along with its cost-saving measures are likely to benefit the top and bottom line results. On the flip side, costs related to these investments could take a toll on margins.
Also see: Best Buy Q1 2020 Earnings Report
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For the second quarter of 2020, Best Buy
has guided for adjusted EPS of $0.95-1.00. Enterprise revenue is expected to be
$9.5 billion to $9.6 billion and enterprise comparable sales growth is projected
to be 1.5-2.5%.
For fiscal year 2020, the retailer expects adjusted EPS of $5.45-5.65,
Enterprise revenue of $42.9 billion to $43.9 billion and Enterprise comparable
sales growth of 0.5% to 2.5%.
In the first quarter of 2020, Best Buy beat revenue and earnings estimates. Revenue remained flat year-over-year at $9.14 billion while adjusted EPS grew 24% to $1.02. Enterprise comparable sales grew 1.1%.
Shares of Best Buy have gained 30% year-to-date. The stock was up 0.60% in morning hours on Monday.