Best Buy Earnings Preview: Go With the Market Reaction

Best Buy (BBY) is scheduled to post its Q4 results ahead of the opening bell today (Wednesday, April 2). Analysts polled by Thomson First Call are expecting the electronics retailer to report a profit of $1.65 per share on revenue of $13.18 billion.

In looking back at BBY's performance between the sessions following pre-market earnings reports, we've found the stock to be a consistent long-term wider mover. BBY has closed the following regular session with more aggressive moves than seen in the pre-market in 10 of the past 14 quarters, or in 71% of the total events we've tracked. In the near-term, the stock remains in the widening trend, adding to its pre-bell performance in the following regular session in three of the last four quarters.

On December 18, 2007, BBY gained 1.1% in pre-market trade after topping Q3 expectations and setting guidance in line with expectations. It narrowed its gains slightly in the following regular session, with a 0.9% rise by the closing bell.

On September 18, BBY advanced 5.2% in the pre-market after it beat Q2 expectations and set it guidance above the Street view. It edged higher into the regular session, ending the day up 6.5%.

On June 19, 2007, the stock shed 4.4% in the pre-market session after reporting below the Street with Q1 results and guiding lower. The loss gained momentum during regular trading and shares closed down 5.9%.

On April 4, 2007, BBY dipped 0.3% in the pre-market session despite topping Q4 expectations. It forecasted FY08 sales just below estimates. Shares fell further during the day, ending the regular session down 2.5%.

Stayed tuned to the market reaction to BBY's earnings news in the pre-market session today. Go with the market on this one!

Comments

[Mr. Man:]

Thank you for this!

Apr 02 11:02 AM