Bed Bath & Beyond, Inc. (NASDAQ: BBBY) is set to report earnings for its Feb-2008 fiscal fourth quarter today after the close. First Call has estimates at $0.65 EPS on $1.96 Billion in revenues for the quarter. As far as guidance or estimates ahead, its fiscal first quarter is expected to see $0.36 EPS on $1.65 Billion in revenues. If the home furnishings retail giant is willing to go out on the limb with guidance for the next year, First Call has its fiscal Feb-2009 estimates at $2.15 EPS on revenues of $7.6 Billion. As far as how that compares to today’s fiscal end expectations, that would represent roughly a 3% gain on EPS on slightly more than an 8% gain in revenues.
Analysts have gone more cautious on this one in recent months, and the average price target from analysts is just north of $30.00. As a reminder, this was just downgraded over the last two weeks by JPMorgan (from Neutral to underweight). Options traders appear to be braced for this stock to move more than $1.00 in either direction based on a static snapshot of early afternoon put/call prices today.
The chart for Bed Bath & Beyond shows an old retail growth stock that has become just another cyclical play. In recent weeks shares are up close to 10%, but that is well off of recent highs around $32.00. The 50-day moving average is $29.92 and the 200-day moving average is $32.10.
We’d caution that some of these last minute numbers may be out of normal pre-earnings comparison. The culprit for today’s 5% drop to $29.35 is a downgrade just this morning from Piper Jaffray. That may throw many of the last minute figure off the mark. Its 52-week trading range is $24.49 to $41.90.
Jon C. Ogg
April 9, 2008
Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at email@example.com and he does not own securities in the companies he covers.