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Bed Bath & Beyond Third Quarter Earnings Preview

December 14, 2012 | Filed Under »
Tickers in this Article » BBBY
Bed Bath & Beyond (Nasdaq:BBBY) will announce its third quarter earnings on Wednesday, December 19, 2012. The company's stock price has fallen -17.8% over the last three months to close at $58.16 on December 13, 2012.



Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 12 Things You Need To Know About Financial Statements

What to Expect: Analysts are expecting Bed Bath & Beyond to report earnings of $1.02 per share, up 7.4% from a year ago, when the company reported earnings of 95 cents per share.

Analysts are expecting earnings of $4.62 per share for the fiscal year.

Bed Bath & Beyond is expected to report revenue of $2.73 billion for the quarter, beating last year's figure of $2.34 billion by 16.5%. Bed Bath & Beyond is expected to report revenue of $10.96 billion for the fiscal year.



Company Performance: The two most recent quarters have shown a year-over-year increase in revenue. It rose 12.1% to $2.59 billion in second quarter. In the previous quarter, the figure rose 5.1%.

BBBY's P/E ratio is 13.6. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: The P/E Ratio: A Good Market-Timing Indicator



October 22, 2012 to October 24, 2012 marked one of Bed Bath & Beyond's worst periods, as the share price fell $3.10.





The Competition: Bed Bath & Beyond is a chain of retail stores that sells products for the home. The majority of analysts (14 of 20) rate Bed Bath & Beyond a buy. This marks a small improvement, as the number of buy ratings has risen slightly over the past three months.

The company's closest competitor in the retail (specialty) industry is Pier one (PIR). Analysts are less optimistic about Bed Bath & Beyond than about Pier one. Nine out of 11 analysts rate the latter a buy.



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