Best Buy (BBY) traded 7% lower on Tuesday morning, after posting earnings that beat analyst estimates for earnings but fell short on guidance.
The electronics retailer reported earnings per share of $0.91 and total revenue of $9.4 billion, compared to Wall Street expectations of $0.82 and $9.2 billion. Looking to the next quarter, the company raised guidance for earnings to $0.79-0.84, below the average estimate of $0.92.
"In the back half, we are expecting a non-GAAP operating income rate decline in the third quarter followed by an increase in the fourth quarter to result in our expectation for an approximately flat rate to last year on a full-year basis," explained CFO Corie Barry.
With regard to the market cycles for BBY, the chart is an example of multiple cycles and a peak that is forming. The colored phasing provides an indication of the condition of the stock, with the present yellow zone a corrective phase, bringing a likelihood of further declines ahead. Our projection is for $71 in coming weeks.
Best Buy (BBY) Stock Chart with Weekly Bars
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