Bed Bath & Beyond Inc. (NASDAQ:BBBY) is expected to report fiscal fourth quarter earnings on Wednesday, April 10th. The whisper number is $1.67, one cent behind the analysts' estimate. BBBY has an 84% positive surprise history (having topped the whisper in 31 of the 37 earnings reports for which we have data).
- Beat whisper: 31 qtrs
- Met whisper: 0 qtrs
- Missed whisper: 6 qtrs
Our primary focus is on post earnings price movement. Knowing how likely a stock's price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.
The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:
The strongest price movement of +1.1% comes within one trading day when the company reports earnings that beat the whisper number, and -1.9% within ten trading days when the company reports earnings that miss the whisper number. The average price reaction (to the whisper number) is 'as expected' (beat the whisper see strength, miss and see weakness) through ten trading days when the company reports earnings.
The table below indicates the most recent earnings reports and short-term price reaction:
Last quarter the company reported earnings one cent ahead of the whisper number. Following that report the stock realized a 2.4% loss in five trading days. The company has reported earnings that have topped the whisper number in six out of the past seven earnings reports. Overall historical data indicates the company to be (on average) an 'as expected' price reactor following earnings (beat the whisper see strength, miss and see weakness) through ten trading days. After ten trading days, the average price moves indicate an opposite reaction.
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Since 1998, WhisperNumber.com has been tracking and publishing "crowd sourced estimates" for earnings. We call these earnings expectations whisper numbers. Our whisper numbers are gained from individual investors and traders just like you that have registered with our site. While the whisper number itself is an important part of our analysis, a company's "price reaction" to beating or missing the whisper number expectation is the key. On average, companies that exceed the whisper are "rewarded," while companies that miss are "punished" following an earnings report.