While analysts estimates have been creeping up as we see more evidence of improvements in the economy, we still believe there is an opportunity for Best Buy to deliver a strong beat this quarter.
While economic conditions have not improved significantly over the last three months, we believe that the rate of decline will moderate from last quarter’s 23% y/y decline in revenues.
Last month, Best Buy reported better than expected quarterly results and this week Intel did the same. We view those both as positive indicators for Microsoft’s upcoming earnings announcement.
