Wells Fargo Says Poor GMCR Sales Could Weigh on Bed Bath & Beyond (BBBY) Shares; Maintains Market Perform
Tweet
Share
E-mail
Get Alerts BBBY Hot Sheet
Price: $0.08 --0%
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
Wells Fargo maintains a 'Market Perform' on Bed Bath and Beyond (NASDAQ: BBBY).
Analyst, Matt Nemer, said, "Green Mountain Coffee (Nasdaq: GMCR) reported F2Q sales that fell short of the company's expectations and issued F3Q guidance below the Street. This has significantly pressured the shares in after-hours trading (down 41%) and we believe BBBY, as the largest retailer of GMCR products, could see corresponding weakness. Demand for Keurig products has been exceptionally strong (revenue grew 95% in FY2011) and this is the first sign that trends could be slowing down. The company attributed 70% of the FQ2 sales shortfall to lower-than-anticipated sales of KCups (which we believe are top selling items at BBBY) and 30% to lower-than-anticipated brewer sales. While GMCR attributes about onethird of the shortfall in expected KCup sales to warmer weather (which impacted demand for hot chocolate and cider), an underlying slowdown in demand could impact BBBY's earnings."
Nemer also remains cautious, citing sales of nationally branded products that competitors like Amazon.com (Nasdaq: AMZN) could/are moving in on.
For an analyst ratings summary and ratings history on Bed Bath and Beyond click here. For more ratings news on Bed Bath and Beyond click here.
Shares of Bed Bath and Beyond closed at $71.61 yesterday.
Analyst, Matt Nemer, said, "Green Mountain Coffee (Nasdaq: GMCR) reported F2Q sales that fell short of the company's expectations and issued F3Q guidance below the Street. This has significantly pressured the shares in after-hours trading (down 41%) and we believe BBBY, as the largest retailer of GMCR products, could see corresponding weakness. Demand for Keurig products has been exceptionally strong (revenue grew 95% in FY2011) and this is the first sign that trends could be slowing down. The company attributed 70% of the FQ2 sales shortfall to lower-than-anticipated sales of KCups (which we believe are top selling items at BBBY) and 30% to lower-than-anticipated brewer sales. While GMCR attributes about onethird of the shortfall in expected KCup sales to warmer weather (which impacted demand for hot chocolate and cider), an underlying slowdown in demand could impact BBBY's earnings."
Nemer also remains cautious, citing sales of nationally branded products that competitors like Amazon.com (Nasdaq: AMZN) could/are moving in on.
For an analyst ratings summary and ratings history on Bed Bath and Beyond click here. For more ratings news on Bed Bath and Beyond click here.
Shares of Bed Bath and Beyond closed at $71.61 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gilead Sciences (GILD) Misses Q1 EPS by 288c
- Arca Biopharma (ABIO) Reports Q1 Loss of $0.14
- Utah Medical Products (UTMD) Reports Q1 EPS of $1.10
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Earnings, Wells FargoSign 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!
