Best Buy Co., Inc.
) is slated to report its second-quarter fiscal 2014 results on
Aug 20, 2013. In the last quarter, it posted a positive surprise
of 28%. Let's see how things are shaping up for this
Factors this Past Quarter
Best Buy posted better-than-expected first-quarter fiscal 2014
results, wherein earnings of 32 cents a share surpassed the Zacks
Consensus Estimate, but dropped substantially by 57.9% from the
year-ago quarter. The year-over-year decline in the bottom line
was due to one lesser week in the quarter under review compared
with the prior-year period, the shift of the Super Bowl in the
fourth quarter of fiscal 2013, competitive pricing policies and
no major product launches.
Our proven model does not conclusively show that Best Buy is
likely to beat earnings estimate this quarter. This is because a
stock needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. This is not
the case here, as you will see below.
Negative Zacks ESP:
ESP for Best Buy is -33.33%. This is because the Most Accurate
Estimate stands at 8 cents, while the Zacks Consensus Estimate is
pegged at 12 cents.
Zacks Rank #2 (Buy):
Best Buy's Zacks Rank #2 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with a
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Citi Trends, Inc.
), Earnings ESP of +2.33% and a Zacks Rank #2 (Buy).
New York & Company Inc.
), Earnings ESP of +33.33% and a Zacks Rank #3 (Hold).
), Earnings ESP of +4.17% and a Zacks Rank #3 (Hold).
BEST BUY (BBY): Free Stock Analysis Report
CABELAS INC (CAB): Free Stock Analysis Report
CITI TRENDS INC (CTRN): Free Stock Analysis
NEW YORK & CO (NWY): Free Stock Analysis
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