11:29 AM EDT, 05/22/2025 (MT Newswires) -- Best Buy's ( BBY ) fiscal Q1 earnings probably will be supported by demand ahead of tariff-related cost increases, BofA Securities said Thursday in a report.

Earnings are forecast at $1.11 a share versus the Wall Street consensus of $1.08 with a projected 0.5% drop in enterprise comparable sales matching estimates, BofA said. Foot traffic measured by Placer.ai improved from the previous quarter, partly on preorders of Nintendo Switch 2, the report said.

A return to growth in computing and services and potential contributions from incremental revenue streams "are more than offset by challenging industry trends, lack of innovation, uncertainty around tariffs," and long-term market share pressure from rivals, the report said.

BofA maintained its underperform rating on Best Buy ( BBY ) stock with a $75 price target.

The company is scheduled to report Q1 results on May 29.

Best Buy ( BBY ) shares rose 0.7% in recent trading Thursday.

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