Electronics retailer Best Buy (NYSE:BBY) will be reporting results tomorrow before market hours. Here’s what you need to know.

Best Buy missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $9.45 billion, down 3.2% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates.

Is Best Buy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Best Buy’s revenue to decline 6.6% year on year to $13.67 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.41 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Best Buy has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Best Buy’s peers in the specialty retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Bath and Body Works’s revenues decreased 4.3% year on year, meeting analysts’ expectations, and Warby Parker reported revenues up 17.8%, topping estimates by 1.9%. Bath and Body Works traded down 11.9% following the results while Warby Parker was up 4.1%.

Read our full analysis of Bath and Body Works’s results here and Warby Parker’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the specialty retail stocks have shown solid performance, the group has generally underperformed, with share prices down 7.1% on average over the last month. Best Buy is up 6.9% during the same time and is heading into earnings with an average analyst price target of $97.76 (compared to the current share price of $91.50).

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