Earnings Preview: Best Buy Co. (BBY)

Best Buy Co. BBY is currently higher on the session by 0.86%, trading at $42.16. The company is scheduled to report earnings tomorrow, before the opening bell. • Estimates The Street is looking for Q3 earnings per share of $0.61 on revenue of $12.47 billion. These estimates have risen by $0.04 (+7.00%) over the past 90 days. The Whisper Number for BBY is $0.65. • Guidance The Street is looking for Q1 EPS of $2.05 on revenue of $17.06 billion. The full year 2011 estimates are $3.59 per share on revenue of $51.72 billion; FY 2012 is at $3.94 per share on revenues of $54.44 billion. • Technical Picture BBY has been moving sideways for the past two months, following a multi-month rally up from the $32.00 level. Taking a longer-term view of the stock will show previous peaks above $45.00 and previous valleys around $35.00. BBY's Stochastics are quite oversold as well. • Volatility Both historical volatility and implied volatility have been falling for the past few months, following a spike higher in May. Currently HI is at 28% and IV is at 43%. The front month $42.00 straddle is trading at 67.59%; the January 2011 $42.00 straddle is trading at 35.01%. Best Buy Co., Inc. is a multinational retailer of consumer electronics, home office products, entertainment software, appliances and related services. It operates in two segments: Domestic and International.