Is Inflation or Earnings Affecting These 3 Companies?

Back in 2005, Ben Bernanke assured us that housing was not in a bubble.  Earlier this week, Ben Bernanke once again attempts to give us assurance on the economy, saying that commodity (NYSE:RJI) inflation is merely “transitory.”  Transitory or not, these 3 companies are seeing the effects of inflation and the housing collapse.

These 3 companies reported earnings you should know:

1) Bed Bath & Beyond (NASDAQ:BBBY): Shares are bouncing up 10.25% in late trading after the company released Q4 earnings.  EPS of $1.12 beat estimates by 15 cents.  Apparently homeowners are opting out of paying the mortgage, and instead buying home furnishings.  Sales for the company rose almost 12% to $2.5 billion.  Looking forward, the company expects 2011 earnings around $3.38 to $3.53 per share, higher than previous estimates of $3.30 per share.

2) Monsanto (NYSE:MON): Founded in 2000, the St. Louis company provides agricultural products for farmers across the globe.  Before the opening bell, Monsanto released Q2 earnings.  Net income for Q2 increased to $1.03 billion ($1.88 per share), compared to $887 million ($1.60 per share) last year.  Monsanto is the world’s largest seed company, and although ag names have been on a tear with rising commodity prices, the company said it will not be “overly aggressively” in raising prices.  Shares closed 5.67% lower on the news Wednesday.  Other ag plays such as Potash (NYSE:POT) and Syngenta (NYSE:SYT) also closed lower.

3) Ruby Tuesday (NYSE:RT): Shareholders are getting burned, as shares fall nearly 10% in late trading.  For Q3, the company reported net earnings of $16 million (25 cents per share), compared to $17.8 million (28 cents per share) in the same period last year.  Analysts were expecting about 31 cents per share.  The company owns and operates a chain of specialty restaurants in the US and overseas.  Competitors Darden Restaurants (NYSE:DRI) and Panera Bread (NASDAQ:PNRA) also closed down.

In addition to looking at individual stocks, Here’s 6 Small Caps With Tremendous Value.

Disclosure: No positions