Bed Bath & Beyond Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bed Bath & Beyond (NASDAQ:BBBY) will unveil its latest earnings on Wednesday, September 19, 2012. Bed Bath & Beyond is a chain of retail stores that sells products for the home.

Bed Bath & Beyond Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.02 per share, a rise of 9.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.08. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.02 during the last month. For the year, analysts are projecting net income of $4.68 per share, a rise of 15.3% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at profit of 89 cents a share versus the estimate of net income of 84 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose 14.5% to $206.8 million (89 cents a share) from $180.6 million (72 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.1% to $2.22 billion from $2.11 billion.

Stock Price Performance: Between July 18, 2012 and September 17, 2012, the stock price had risen $9.46 (15.43%), from $61.31 to $70.77. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 6% (-$3.69) over that span. The stock price saw one of its best stretches over the last year between November 1, 2011 and November 8, 2011, when shares rose for six straight days, increasing 3.1% (+$1.92) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.52 billion in revenue this quarter, a rise of 9.1% from the year-ago quarter. Analysts are forecasting total revenue of $10.91 billion for the year, a rise of 14.8% from last year’s revenue of $9.5 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.78 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.09 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 12.9% to $1.51 billion while assets rose 1.4% to $4.2 billion.

Analyst Ratings: With 15 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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