Best Buy Stock (BBY) Drops On Earnings, Cycles Point Lower

Best Buy’s stock (NYSE: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, Best Buy 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.

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With regard to the market cycles for Best Buy’s stock (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 BBY 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

best buy stock bby research forecast outlook chart_august 28 news investing

 

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.