Best Buy Expectations Appropriately Low, According To Jefferies

Best Buy Co., Inc. BBY will announce 2Q11 earnings on Tuesday, 9/14. Jefferies is maintaining 2Q EPS estimates of $0.35, with the possibility that earnings could be reported at $0.41 if gross margins are better than expected. Though BBY shares have reported poor performance, and a cut to guidance wouldn't come as a surprise to Jefferies, 75% or more of earnings regularly coming the second half, so management may be reluctant to make sharp cuts as of right now, according to Jefferies. FY2011 EPS estimates are at $3.04, based on 1- and 3- year average P/E of 12x. Jefferies maintains its Hold rating and $36 price target. Best Buy Co., Inc. closed yesterday at $33.56.