DA Davidson Raises FY2025 Earnings Forecast for Best Buy

Best Buy Co., Inc. (NYSE:BBY) has received an updated earnings forecast from analysts at DA Davidson, who have raised their estimates for FY2025 earnings per share (EPS). In a note to investors dated February 14th, analyst M. Baker indicated that Best Buy is now expected to achieve an EPS of $6.22, slightly higher than the prior estimate of $6.21. The current consensus among analysts for Best Buy's total earnings this fiscal year stands at $6.18 per share.

Future Earnings Projections

Beyond the FY2025 forecasts, DA Davidson also provided estimates for Best Buy's Q4 2025 earnings, projecting an EPS of $2.46, and for FY2026, forecasting an EPS of $6.76. These projections highlight a cautiously optimistic view of the technology retailer's financial performance in the future.

Recent Quarterly Performance

Best Buy last revealed its quarterly earnings results on November 26th. In that report, the retailer announced an EPS of $1.26, falling short of analysts' expectations which were set at $1.30—resulting in a miss of four cents per share. The company's return on equity was recorded at 45.93%, with a net margin of 3.01%. The revenue for the quarter was reported at $9.45 billion, whereas the expectation was $9.63 billion, marking a 3.2% decrease in revenue compared to the same quarter in the previous year, when the company reported an EPS of $1.29.

Analyst Ratings Overview

Best Buy has been the focus of several analysts recently. StockNews.com downgraded their rating on the company from “buy” to “hold” on November 15th. On the other hand, Wells Fargo reduced their target price from $95.00 to $89.00 while maintaining an “equal weight” rating. Citigroup also adjusted their price target downwards from $109.00 to $101.00, maintaining a “buy” rating. Similarly, UBS Group lowered its target price from $123.00 to $115.00, again giving a “buy” rating. Barclays followed by reducing its target from $95.00 to $89.00, assigning an “equal weight” rating. Currently, one analyst has rated the stock as a sell, eight as hold, ten as buy, and one as a strong buy, with a consensus rating categorized as “Moderate Buy” and an average target price of $101.72.

Stock Performance and Dividend Information

As of Monday, shares of Best Buy opened at $91.16. Over the last 52 weeks, the stock has hit a low of $69.29 and a high of $103.71. Financial ratios indicate a debt-to-equity ratio of 0.37, a quick ratio of 0.22, and a current ratio of 1.00. The market capitalization of Best Buy stands at $19.49 billion, with a price-to-earnings ratio of 15.58. Additionally, the company declared a quarterly dividend of $0.94 per share, which was paid on January 7th, representing an annualized dividend of $3.76 and a yield of 4.12% with a payout ratio of 64.27%.

Insider Transactions

In corporate news, CFO Matthew M. Bilunas sold 69,166 shares of Best Buy stock on December 11th at an average price of $87.46. This transaction totaled around $6 million and marked a 42.90% reduction in his position. Post-transaction, he holds 92,070 shares valued at approximately $8 million, while 0.59% of the stock is held by insiders.

Institutional Ownership and Trading Activity

There has been notable activity among institutional investors regarding Best Buy shares. For example, Rakuten Securities increased its holdings by 971.9% in Q4, now owning 343 shares valued at $29,000. Other entities, such as Golden State Wealth Management and Atlas Capital Advisors, have also acquired new stakes or increased their positions in Best Buy, with most institutional investors maintaining a strong interest in the stock, which currently sees 80.96% of shares held by such investors.

About Best Buy

Best Buy Co, Inc is a leading retailer engaged in the sale of technology products in the United States, Canada, and internationally. Their stores offer a variety of electronic goods, including computing devices, mobile phones, smart home products, and consumer electronics.

BestBuy, Earnings, Forecast