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Investing.com - Best Buy Co. (NYSE:BBY), with annual revenue of $41.6 billion and a market cap of $15.35 billion, reported second-quarter results above expectations, driven by positive comparable sales growth, according to KeyBanc Capital Markets.
KeyBanc analyst Bradley Thomas maintained a Sector Weight rating on the electronics retailer, noting that the company delivered its strongest comparable sales growth since 2021, which aligned with trends observed in KeyBanc’s proprietary First Look Data. According to InvestingPro, Best Buy maintains a healthy 22.54% gross profit margin and offers an attractive 5.23% dividend yield.
The retailer’s sales are trending toward the upper end of management’s fiscal 2025 guidance, supported by the successful Nintendo Switch 2 launch and growth in computing and phone categories.
Despite the sales strength, Best Buy reiterated its fiscal 2025 earnings per share guidance, citing uncertainty around tariffs and the future promotional landscape.
KeyBanc believes the category outlook for consumer electronics is increasingly positive and that tariff risks can be successfully mitigated, though the firm still sees elevated competitive intensity ahead for Best Buy.
In other recent news, Best Buy has reported its second-quarter earnings for fiscal year 2026, showcasing a stronger-than-expected performance. The company posted earnings per share of $1.28, surpassing the forecast of $1.22, and revenue reached $9.4 billion, exceeding expectations of $9.23 billion. Goldman Sachs responded to this performance by raising its price target for Best Buy to $95.00 from $94.00, maintaining a Buy rating. The company reiterated its fiscal year 2026 guidance, indicating it is trending toward the high end of its sales guidance range of -1% to 1%.
Evercore ISI also adjusted its price target for Best Buy, increasing it to $77.00 from $75.00, while maintaining an "In Line" rating. The firm highlighted that Best Buy’s 2Q comparable sales growth of 1.6% marked its best performance since the third quarter of 2021. This growth suggests a potential path to earnings growth in 2026. Sales momentum from June and July has continued into August, with management guiding third-quarter sales 150 basis points above consensus estimates. These developments reflect a positive outlook from analysts on Best Buy’s recent performance.
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