Website Traffic Suggests Mixed Q2 Results
Best buy (BBY) is expected to release its financial results for the second quarter of fiscal 2023 on August 30, 2022, ending July 30, 2022. During the quarter, the company faced a challenging macroeconomic environment as high inflation hurt the purchasing power of consumers. Overall customer demand in the consumer electronics business was also weak, which should negatively impact financial results. TipRanks’ website traffic tool hints at mixed earnings from the retail tech player.
Minnesota-based Best Buy is a retail technology company that sells consumer electronics including desktop computers, laptops and cell phones.
Mixed traffic on the Best Buy website
TipRanks’ website traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s largest website usage monitoring service, provides insight into Best Buy’s performance this quarter.
The tool shows that Best Buy’s website saw a 5.13% increase in global visits in Q2 2023 compared to Q1 2023. However, Best Buy’s website traffic was down nearly 16 % year-to-date, signaling underlying weakness from last year’s levels.
An increase in website traffic implies a high demand for the products, which portends favorable earnings. On the other hand, a drop in website traffic implies low demand for the company’s products, which portends negative results.
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Best Buy’s Q2 earnings expectations
Analysts expect Best Buy to generate earnings of $1.27 per share for its fiscal second quarter, down from $2.98 per share in the year-ago quarter. Management expects Q2 2023 comparable sales to decline 13%.
Management expects second quarter results to soften further and come in below expectations, hurt by deteriorating consumer sentiment. In response to the weakening sales environment, Best Buy suspended its stock buybacks. However, the company remains committed to its quarterly dividend of $0.88 per share.
Will BBY stock go up?
According to analysts’ rating consensus from TipRanks, BBY stock is a hold based on five buys, seven holds and three sells. The average BBY price target is $77. The price target suggests that analysts expect the stock to rise around 4% from current levels.
TipRanks’ Stock Investors tool shows that investor sentiment is currently neutral on Best Buy shares. Over the past 30 days, 0.8% of the top performing portfolios tracked by TipRanks have increased their exposure to Best Buy stocks.
Best Buy’s shares could come under pressure if Best Buy reports weak second-quarter results. TipRanks website traffic indicates mixed results, and management has also warned of weak financial results.
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