Q1 Preview: Tough Comps Ahead, But Bed Bath & Beyond (BBBY) Can Handle It
Tweet Send to a Friend
Get Alerts BBBY Hot Sheet
Price: $68.53 -0.01%
Rating Summary:
10 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 13
Rating Summary:
10 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 13
Trade BBBY Now!
Bed Bath & Beyond (Nasdaq: BBBY) shares are under pressure Wednesday afternoon heading into the company's first-quarter earnings report, expected out after the market closes.
The Street is looking for EPS of 84 cents on revs of $2.25 billion. If Bed Bath & Beyond can hit the estimates, earnings would be up 17 percent from the same period last year, but down from $1.48 reported in the typically strong fourth quarter.
With its last report, Bed Bath & Beyond said it sees first-quarter 2012 EPS of 79 cents to 83 cents.
Shares of the retailer rose 21 percent in the quarter to $72.25 at the end of May. Since the end of the quarter, shares have risen 2.4 percent and are up over 27 percent for 2012. Over the last 52 weeks, Bed Bath & Beyond shares have moved between $48.75 and $75.84.
Investors might look at retailers like Target (NYSE: TGT) and Wal-Mart (NYSE: WMT) for hints at Bed Bath & Beyond's quarter. Target reported strong first-quarter results while boosting FY12 guidance. Wal-Mart also had a strong quarter and issued guidance that was inline with expectations.
Data from Bloomberg shows 16 analysts at Buy, 11 at Hold, and one with a Sell rating on Bed Bath & Beyond. The Street's price target average is $76.75, which spans from $66 up to $91.
Analyst Comments:
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The Street is looking for EPS of 84 cents on revs of $2.25 billion. If Bed Bath & Beyond can hit the estimates, earnings would be up 17 percent from the same period last year, but down from $1.48 reported in the typically strong fourth quarter.
With its last report, Bed Bath & Beyond said it sees first-quarter 2012 EPS of 79 cents to 83 cents.
Shares of the retailer rose 21 percent in the quarter to $72.25 at the end of May. Since the end of the quarter, shares have risen 2.4 percent and are up over 27 percent for 2012. Over the last 52 weeks, Bed Bath & Beyond shares have moved between $48.75 and $75.84.
Investors might look at retailers like Target (NYSE: TGT) and Wal-Mart (NYSE: WMT) for hints at Bed Bath & Beyond's quarter. Target reported strong first-quarter results while boosting FY12 guidance. Wal-Mart also had a strong quarter and issued guidance that was inline with expectations.
Data from Bloomberg shows 16 analysts at Buy, 11 at Hold, and one with a Sell rating on Bed Bath & Beyond. The Street's price target average is $76.75, which spans from $66 up to $91.
Analyst Comments:
- Goldman Sachs sees EPS of 87 cents and comps up 5.5 percent, saying guidance has typically been conservative. The firm is expecting a subpar sequential trend in sales per foot, though last quarter was a big one with Green Mountain (Nasdaq: GMCR) Keurig and SodaStream (Nasdaq: SODA) systems selling well.
- Deutsche Bank sees comps up 4 percent leading to EPS of 83 cents. Deutsche said: "...we believe 1Q12 comps are on track, as the delta between industry sales and our comp estimate is similar to the delta in 4Q11, despite a 150 bps easier y/y compare in 1Q12."
One of the bigger risks Deutsche noted investors might hone in on includes the potential for raising guidance. Right now, Bed Bath & Beyond sees fiscal 2012 EPS at $4.62, what would be up 14 percent. Deutsche is looking for high-single-to-low-double digit growth in 2012, or about 8 percent to 10 percent.
- Wedbush is expecting EPS of 84 cents with comps up 4 percent. The firm noted Bed Bath & Beyond's "most similar competitor HomeGoods (a 390-store division of TJX Companies) already reported Q1 comps up 9%, which bodes well for [the company]."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: JPMorgan Cuts SodaStream (SODA) to Neutral, 'Stock No Longer Cheap'
- UBS Raises PT on MEMC (WFR); Thinks Semi Sales Troughed in Q1
- Signs of Solid Q2 at American Eagle (AEO) - Analyst
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Deutsche Bank, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
