Will These Numbers from Best Buy Be Good Enough for You?

Best Buy (NYSE: BBY  ) is expected to report Q4 earnings on Feb. 28. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Best Buy's revenues will decrease -2.6% and EPS will compress -38.1%.

The average estimate for revenue is $16.29 billion. On the bottom line, the average EPS estimate is $1.53.

Revenue details
Last quarter, Best Buy booked revenue of $10.75 billion. GAAP reported sales were 3.5% lower than the prior-year quarter's $11.15 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.03. GAAP EPS were -$0.03 for Q3 versus $0.42 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 24.0%, 160 basis points worse than the prior-year quarter. Operating margin was 0.4%, 300 basis points worse than the prior-year quarter. Net margin was -0.1%, 150 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $49.23 billion. The average EPS estimate is $2.48.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 2,659 members out of 3,448 rating the stock outperform, and 789 members rating it underperform. Among 884 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 679 give Best Buy a green thumbs-up, and 205 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Best Buy is hold, with an average price target of $17.80.

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