Analyst: Best Buy Will Suffer From Migration to Online Retail
The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.
Best Buy (NYSE:BBY) will report its fiscal Q2:14 results before market open on Tuesday, August 20, and host a conference call at 5am PT (800-762-8779, conf. ID: 4635419, or webcast at http://www.investors.bestbuy.com).
We expect Q2 revenue and earnings in line with our estimates. We expect revenue of $9.24 billion and EPS of $0.07, vs. consensus for revenue of $9.10 billion and EPS of $0.11. We expect total comps in line with our estimate of down 1.4 percent (domestic down 0.5 percent, international down 6.2 percent).
We are revising FY:14 EPS estimates to $1.80 from $1.74 vs. consensus of $2.19 to reflect adjustments to working capital, debt refinancing, and product mix. We are revising FY:15 estimates for EPS to $1.66 from $1.56 vs. consensus of $2.38 to reflect lower interest expenses and product mix.
Best Buy completed the sale of Best Buy Europe to Carphone Warehouse during Q2:14 and we expect related transaction expenses during the quarter. We expect Best Buy to share its plans for use of the proceeds.