Best Buy Co., Inc. (NYSE:BBY) Quarterly Earnings Preview

• Best Buy is set to release its quarterly earnings with an expected EPS of $1.09 and projected revenue of $8.82 billion.
• The company faces a 9.2% decline in EPS and a 0.9% decrease in revenue from the previous year.
• Financial metrics reveal a P/E ratio of approximately 16.64, indicating the company's market valuation.

Best Buy Co., Inc. (NYSE:BBY) is a leading retailer of consumer electronics and appliances, operating in a competitive market against giants like Amazon and Walmart. On May 29, 2025, Best Buy is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $1.09 and projected revenue of $8.82 billion.

The expected EPS of $1.09 for the quarter ending April 2025 represents a 9.2% decline from the previous year, as highlighted by Zacks Investment Research. Revenue is anticipated to be $8.77 billion, a slight 0.9% decrease from the same quarter last year. Despite these declines, there has been a 0.2% upward revision in the consensus EPS estimate over the past 30 days, indicating analysts' adjusted projections.

Best Buy is expected to report weak fiscal Q1 results, with negative comparable sales growth anticipated. Declining consumer confidence, particularly in April, has impacted the company's outlook. The fiscal year 2026 outlook is also under pressure due to weaker consumer confidence and the impact of tariffs, including a 30% tariff on China, which is not included in Best Buy's current guidance.

Best Buy's stock could face an 11% downside, potentially dropping to $63.3 if the company fails to meet expectations. The market is closely watching to see if Best Buy can surpass these estimates, as doing so could positively impact the stock price. Conversely, failing to meet expectations might lead to a decrease in the stock's value.

Best Buy's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 16.64, a price-to-sales ratio of about 0.37, and an enterprise value to sales ratio of around 0.43. The debt-to-equity ratio is approximately 1.44, indicating the proportion of debt used to finance its assets relative to shareholders' equity. The current ratio is around 1.03, suggesting the company's ability to cover its short-term liabilities with its short-term assets.