Best Buy (NYSE:BBY) Shares Gap Up Following Earnings Beat

Best Buy Co., Inc. (NYSE:BBY) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $61.59, but opened at $64.61. Best Buy shares last traded at $64.3540, with a volume of 3,744,345 shares changing hands.

The technology retailer reported $2.61 earnings per share for the quarter, topping analysts’ consensus estimates of $2.50 by $0.11. Best Buy had a net margin of 1.54% and a return on equity of 50.02%. The company had revenue of $13.81 billion during the quarter, compared to analyst estimates of $13.96 billion. During the same period in the previous year, the business earned $2.58 EPS. The firm’s revenue for the quarter was down 1.0% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS.

Key Stories Impacting Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Q4 earnings beat — Best Buy reported $2.61 EPS, topping consensus and beating Zacks’ estimate; profitability metrics (ROE ~50%) show margin progress that helped calm investors. Best Buy (BBY) Q4 Earnings Beat Estimates
• Positive Sentiment: Profit improvement highlighted — company showed improved margins and profit growth despite a slight revenue decline, which helped underpin the upside surprise in EPS. Best Buy earnings and press release
• Positive Sentiment: Market reaction nuance — several outlets note the stock jumped initially as investors focused on the EPS beat and profit trends despite weak sales guidance. Best Buy Earnings Are Mixed. Why the Stock Is Surging.
• Neutral Sentiment: Commentary and sentiment — pundits (including Jim Cramer) flagged risks from higher device and memory costs and mixed messaging on demand, which adds noise to near?term investor sentiment. Jim Cramer on Best Buy
• Negative Sentiment: Guidance disappointed — Best Buy set FY?2027 EPS guidance of $6.30–$6.60 and revenue guidance of $41.2B–$42.1B, both below consensus, signaling tepid growth expectations and weighing on the share price. Best Buy forecasts annual sales below estimates
• Negative Sentiment: Sales/revenue weakness and demand pressure — holiday sales missed expectations (Q revenue $13.81B vs. est ~$13.96B) and Best Buy cited consumers hunting for value plus tariff/supply?chain uncertainty as headwinds. Best Buy’s holiday sales disappoint

Wall Street Analysts Forecast Growth

BBY has been the subject of several research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Best Buy in a research report on Wednesday, January 21st. Jefferies Financial Group cut their price objective on shares of Best Buy from $94.00 to $89.00 and set a “buy” rating for the company in a research report on Monday, February 9th. BNP Paribas Exane lowered their target price on Best Buy from $69.00 to $68.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 26th. JPMorgan Chase & Co. downgraded Best Buy from an “overweight” rating to a “neutral” rating and decreased their price objective for the stock from $99.00 to $76.00 in a research note on Monday, February 2nd. Finally, Barclays lowered their price target on shares of Best Buy from $81.00 to $77.00 and set an “equal weight” rating on the stock in a report on Thursday, January 8th. Seven equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Best Buy presently has an average rating of “Hold” and a consensus price target of $80.05.

Hedge Funds Weigh In On Best Buy

Hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC raised its stake in shares of Best Buy by 99.8% during the third quarter. AQR Capital Management LLC now owns 6,997,871 shares of the technology retailer’s stock valued at $525,120,000 after acquiring an additional 3,496,254 shares in the last quarter. Norges Bank purchased a new stake in Best Buy in the fourth quarter worth about $174,685,000. Schroder Investment Management Group increased its position in Best Buy by 378.8% during the 4th quarter. Schroder Investment Management Group now owns 3,096,015 shares of the technology retailer’s stock valued at $207,216,000 after purchasing an additional 2,449,342 shares during the period. KBC Group NV lifted its position in shares of Best Buy by 293.6% in the 4th quarter. KBC Group NV now owns 1,052,805 shares of the technology retailer’s stock worth $70,464,000 after purchasing an additional 785,294 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Best Buy by 14,865.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 771,159 shares of the technology retailer’s stock valued at $51,614,000 after purchasing an additional 766,006 shares in the last quarter. Institutional investors own 80.96% of the company’s stock.

Best Buy Stock Up 5.6%

The company has a quick ratio of 0.26, a current ratio of 1.05 and a debt-to-equity ratio of 0.44. The company has a market cap of $13.63 billion, a P/E ratio of 21.32, a P/E/G ratio of 1.48 and a beta of 1.46. The business’s 50 day moving average is $66.90 and its 200 day moving average is $72.94.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.