Analysts expect Best Buy to report relatively weak sales in the 2nd quarter

Earnings Preview: Best Buy Inc.

MINNEAPOLIS — Electronics seller Best Buy Inc. reports its second-quarter results before the market opens on Tuesday.

WHAT TO WATCH FOR: Analysts expect Best Buy to report sales were relatively weak during the quarter because other companies that sell electronics, such as Target Corp. and Costco Wholesale Corp., reported sales declines in those departments during the summer.

But analysts expects Best Buy’s cost-cutting to help cushion its net income and don’t expect its stock to suffer.

“We expect management may be more conservative with its full-year guidance in light of the macro environment, but we believe a reduction to guidance is already reflected in (the stock’s share price),” William Blair & Co. analyst Jack Murphy.

WHY IT MATTERS: Best Buy is the No. 1 U.S. electronics specialty retailer. Strong sales at Best Buy would indicate consumers are willing to spend on pricey electronics.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters expect net income of 44 cents per share on revenue of $11.58 billion.

LAST YEAR’S QUARTER: The company earned 37 cents per share on revenue of $11 billion.