Zacks Research Brokers Cut Earnings Estimates for Best Buy

Best Buy Co., Inc. (NYSE:BBY) – Analysts at Zacks Research reduced their FY2025 EPS estimates for shares of Best Buy in a research note issued to investors on Monday, December 16th. Zacks Research analyst R. Department now expects that the technology retailer will earn $6.20 per share for the year, down from their previous forecast of $6.26. The consensus estimate for Best Buy’s current full-year earnings is $6.18 per share. Zacks Research also issued estimates for Best Buy’s Q4 2025 earnings at $2.40 EPS, Q2 2026 earnings at $1.42 EPS, Q3 2026 earnings at $1.43 EPS, Q4 2026 earnings at $2.64 EPS, FY2026 earnings at $6.75 EPS, Q2 2027 earnings at $1.57 EPS, Q3 2027 earnings at $1.60 EPS and FY2027 earnings at $7.42 EPS.

Best Buy (NYSE:BBY) last announced its quarterly earnings results on Tuesday, November 26th. The technology retailer reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.04). The firm had revenue of $9.45 billion during the quarter, compared to the consensus estimate of $9.63 billion. Best Buy had a net margin of 3.01% and a return on equity of 45.93%. The firm’s revenue was down 3.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.29 earnings per share.

A number of other brokerages have also issued reports on BBY. DA Davidson reiterated a “buy” rating and issued a $117.00 price objective on shares of Best Buy in a report on Tuesday, October 15th. Guggenheim dropped their price target on shares of Best Buy from $110.00 to $105.00 and set a “buy” rating for the company in a research note on Friday, November 29th. UBS Group reduced their price objective on shares of Best Buy from $123.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, November 27th. Truist Financial lowered their target price on Best Buy from $107.00 to $95.00 and set a “hold” rating for the company in a research report on Wednesday, November 27th. Finally, Telsey Advisory Group cut their target price on Best Buy from $115.00 to $110.00 and set an “outperform” rating on the stock in a report on Tuesday, November 26th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, Best Buy has a consensus rating of “Moderate Buy” and an average target price of $101.06.

Best Buy Price Performance

Best Buy stock opened at $85.20 on Wednesday. The company has a market capitalization of $18.22 billion, a PE ratio of 14.56, a P/E/G ratio of 2.19 and a beta of 1.44. The company has a current ratio of 1.00, a quick ratio of 0.22 and a debt-to-equity ratio of 0.37. The stock has a 50-day moving average price of $90.64 and a two-hundred day moving average price of $90.54. Best Buy has a 12 month low of $69.29 and a 12 month high of $103.71.

Hedge Funds Weigh In On Best Buy

Institutional investors have recently modified their holdings of the company. Assenagon Asset Management S.A. raised its holdings in Best Buy by 4.0% during the second quarter. Assenagon Asset Management S.A. now owns 13,470 shares of the technology retailer’s stock worth $1,135,000 after buying an additional 516 shares during the last quarter. Pallas Capital Advisors LLC bought a new position in Best Buy in the 2nd quarter valued at about $370,000. SeaCrest Wealth Management LLC bought a new position in Best Buy in the 2nd quarter valued at about $216,000. Atria Wealth Solutions Inc. boosted its stake in Best Buy by 8.1% during the 2nd quarter. Atria Wealth Solutions Inc. now owns 16,071 shares of the technology retailer’s stock valued at $1,366,000 after purchasing an additional 1,199 shares during the last quarter. Finally, My Legacy Advisors LLC bought a new stake in Best Buy during the 2nd quarter worth approximately $222,000. 80.96% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Best Buy

In other Best Buy news, CFO Matthew M. Bilunas sold 69,166 shares of the firm’s stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $87.46, for a total value of $6,049,258.36. Following the completion of the sale, the chief financial officer now owns 92,070 shares of the company’s stock, valued at approximately $8,052,442.20. This trade represents a 42.90 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.59% of the company’s stock.

Best Buy Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, January 7th. Shareholders of record on Tuesday, December 17th will be issued a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 4.41%. The ex-dividend date of this dividend is Tuesday, December 17th. Best Buy’s payout ratio is 64.27%.

About Best Buy

Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.