Earnings Preview: Best Buy to post 1st-qtr results

OVERVIEW: Electronics retailer Best Buy has recently struggled to keep sales growing as consumers cut back on discretionary spending amid far higher gas and food prices. Analysts have questioned whether poor demand for big ticket items like televisions will hurt profit.

When Best Buy reported its fourth-quarter earnings, Chief Financial Officer Jim Muehlbauer said the retailer is planning for a "soft consumer environment in the near term." However, the retailer expects more growth in the second half of the year from an improving economy and some internal actions like expanding its Best Buy Mobile phone sales to most of its U.S. stores.

BY THE NUMBERS: Best Buy has not offered any guidance for the quarter. Analysts polled by Thomson Financial expect profit of 37 cents per share on revenue of $8.57 billion.

ANALYST TAKE: Investors and analysts will likely be looking to see whether the retailer received any boost in sales from the fiscal stimulus checks being sent to taxpayers.

Goldman Sachs analyst Matthew J. Fassler said in a note to investors that Best Buy may have benefited in the quarter at the expense of rival Circuit City Stores Inc.

Circuit City, which has tried to aggressively cut costs, is facing pressure from shareholders to improve profitability.

Fassler said Best Buy was able to offer 0 percent financing and appeared to take market share in the TV market.

He added that the stimulus checks may help the company see higher revenue in the quarter.

WHATS AHEAD: For fiscal 2009, Best Buy expects a profit of $3.25 to $3.40 per share on revenue of $43 billion to $44 billion.