Best Buy Stock Is Sinking After Earnings. Here's Why
Best Buy is one of the worst S&P 500 stocks Tuesday after the retailer missed quarterly earnings expectations and slashed its full-year forecast.


Best Buy (BBY) is one of the worst S&P 500 stocks Tuesday after the electronics retailer came up short of top- and bottom-line expectations for its fiscal 2025 third quarter and cut its full-year outlook.
In the three months ended November 2, Best Buy's revenue decreased 3.2% year over year to $9.45 billion, pressured by a 2.9% drop in enterprise comparable-store sales. Its earnings per share (EPS) fell 2.3% from the year-ago period to $1.26.
"In the third quarter, our teams delivered an in-line non-GAAP operating income rate on sales that were a little softer than expected," said Best Buy CEO Corie Barry in a statement. "During the second half of the quarter, a combination of the ongoing macro uncertainty, customers waiting for deals and sales events, and distraction during the run-up to the election, particularly in non-essential categories, led to softer-than-expected demand."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
BBY's top and bottom lines came up short of analysts’ expectations. Wall Street was anticipating revenue of $9.6 billion and earnings of $1.29 per share, according to CNBC.
As a result of the weak quarter, Best Buy reduced its full-year outlook. The company now expects revenue in the range of $41.1 billion to $41.5 billion and earnings per share of $6.10 to $6.25. This compares to its previous forecast for revenue of $41.3 billion to $41.9 billion and earnings of $6.10 to $6.35.
"For the fourth quarter, we expect comparable sales versus last year to be flat to down 3% and our non-GAAP operating income rate to be in the range of 4.6% to 4.8%," said Best Buy Chief Financial Officer Matt Bilunas.
Is Best Buy stock a buy, sell or hold?
Heading into Tuesday's session, Best Buy was up nearly 23% for the year to date on a total return basis (price change plus dividend). And Wall Street has a bullish tilt on the high-yielding dividend stock (4% at current levels).
According to S&P Global Market Intelligence, the average analyst target price for BBY stock is $103.36, representing implied upside of nearly 20% to current levels. Meanwhile, the consensus recommendation is Buy.
Not everyone is all in on the consumer discretionary stock, though. Financial services firm Wedbush has a Neutral rating (equivalent to a Hold) on Best Buy with a $95 price target.
"BBY has the most exposure to increased tariffs in our hardlines coverage given its reliance on imported products (we estimate 90% of cost of goods sold), many of which come from or depend on parts from China (we estimate 40% of COGS), and very discretionary products," wrote Wedbush analyst Seth Basham in a November 21 note.
"While BBY would move to mitigate these costs, the complexity of the electronics supply chain and its deep ties to China make this difficult to do quickly,' the analyst added.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?
Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
By Kelley R. Taylor
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
By Todd Talbot, CFP®, NSSA, CTS™
-
Serious Medical Diagnosis? Four Financial Steps to Take
A serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
By Thomas C. West, CLU®, ChFC®, AIF®
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®