Wall Street is high on Bed Bath & Beyond (BBBY), expecting it to report earnings that are up 18.9% from a year ago when it reports its third quarter earnings on Wednesday, December 21, 2011. The consensus estimate is 88 cents per share, up from earnings of 74 cents per share a year ago.
What to Expect:
The consensus estimate remains unchanged over the past month, but it has increased from three months ago when it was 86 cents. Analysts are projecting earnings of $3.83 per share for the fiscal year.
Revenue is projected to eclipse the year-earlier total of $2.19 billion by 7.1%, finishing at $2.35 billion for the quarter. Revenue is projected to come in at $9.44 billion for the year.
Analyst Ratings:
The majority of analysts (63.2%) rate Bed Bath & Beyond as a buy. This compares favorably to the analyst ratings of its nearest six competitors, which average 56.3% buys. Analyst sentiment has been waning recently, as the number of buy ratings has dropped slightly over the past three months.
Trends to Watch For:
The company's net income has been increasing for three consecutive quarters. In the second quarter, net income rose 26.2% while it rose 31.3% in the first quarter and 25.4% in the fourth quarter of the last fiscal year.
Revenue has risen the past four quarters. Revenue increased 8.3% to $2.31 billion in the second quarter. Revenue rose 9.7% in the first quarter from the year earlier, climbed 11.6% in the fourth quarter of the last fiscal year from the year-ago quarter and 11.1% in the third quarter of the last fiscal year.
Competitors:
Bed Bath & Beyond sells an assortment of domestics merchandise and home furnishings, which include food, giftware, health and beauty care items and infant and toddler merchandise. One of Bed Bath & Beyond's main competitors in the specialty retail industry is Williams-Sonoma (WSM). Other competitors in the consumer discretionary sector include: Kirkland's (KIRK) and Pier 1 Imports (PIR).
Recent Price Movement: The stock price has increased from $59.86 on September 19, 2011 to $61.17 over the past quarter.
Earnings estimates provided by Zacks.
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