Bed Bath & Beyond Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bed Bath & Beyond (NASDAQ:BBBY) will unveil its latest earnings on Wednesday, December 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 analyst estimate is for profit of $1.02 per share, a rise of 7.4% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 13.8% versus last year to $4.62.

Past Earnings Performance: Last quarter, the company missed estimates by 4 cents, coming in at net income of 98 cents per share versus a mean estimate of profit of $1.02 per share. In the first quarter, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: Analysts predict a rise of 16.7% in revenue from the year-earlier quarter to $2.73 billion.

Stock Price Performance: Between September 19, 2012 and December 13, 2012, the stock price fell $10.63 (-15.5%), from $68.79 to $58.16. It saw one of its worst periods between February 3, 2012 and February 10, 2012 when shares fell for six straight days, dropping 6.6% (-$4.17) over that span. The stock price saw one of its best stretches over the last year between November 16, 2012 and November 23, 2012, when shares rose for five straight days, increasing 6.7% (+$3.76) over that span.

A Look Back: In the second quarter, profit fell 2.2% to $224.3 million (98 cents a share) from $229.4 million (93 cents a share) the year earlier, missing analyst expectations. Revenue rose 12.1% to $2.59 billion from $2.31 billion.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 5.1% in the first quarter before climbing again in the second quarter.

Analyst Ratings: With 14 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.32 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 2.78 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 11.4% to $3.72 billion while liabilities rose by 5.9% to $1.6 billion.

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

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