Results: Best Buy Co., Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

The quarterly results for Best Buy Co., Inc. (NYSE:BBY) were released last week, making it a good time to revisit its performance. Revenues were US$9.3b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.35 were also better than expected, beating analyst predictions by 17%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Best Buy after the latest results.

View our latest analysis for Best Buy

Taking into account the latest results, the 26 analysts covering Best Buy provided consensus estimates of US$41.6b revenue in 2025, which would reflect a discernible 2.2% decline over the past 12 months. Statutory earnings per share are predicted to rise 4.0% to US$6.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$41.6b and earnings per share (EPS) of US$5.90 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 15% to US$104, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Best Buy analyst has a price target of US$123 per share, while the most pessimistic values it at US$80.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Best Buy's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 4.4% to the end of 2025. This tops off a historical decline of 0.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.8% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Best Buy to suffer worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Best Buy following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Best Buy analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Best Buy has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.