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Bed Bath & Beyond Inc. (BBBY), together with its subsidiaries, operates a chain of retail stores. It sells a range of domestic merchandise, such as bed linens and related items, bath items, and kitchen textiles; and home furnishings, including kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and certain juvenile products.

It is scheduled to report its Q1 2012 results on June 20, 2012, after the market closes.

Technical Overview


Key Metrics

  • Market Cap: 16.74B
  • 52-week trading range: 48.75 - 74.67
  • Trailing P/E: 17.74
  • Forward P/E: 14.04
  • Price/Sales: 1.75
  • Price/Book: 4.24
  • PEG Ratio: 1.13
  • Total Debt: 0.00
  • Annual dividend yield: N/A
  • Return on Equity: 25.20%
  • Return on Assets: 17.24%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter, it reported $1.48 EPS, beating analyst estimates of $1.33.

The consensus EPS is $0.84 based on 23 analysts' estimates, up from $0.72 a year ago. Revenue estimates are $2.25B, up from $2.11B a year ago. The median target price by analysts for the stock is $75.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 12, 2012, the company was downgraded from Buy to Hold at Canaccord Genuity.
  • On April 5, 2012, UBS reiterated a Neutral rating for the company.
  • On April 5, 2012, Canaccord Genuity reiterated a Buy rating for the company.
  • On April 5, 2012, Barclays reiterated an Overweight rating for the company.
  • On March 20, 2012, Deutsche Bank reiterated a Buy rating for the company.
  • On March 19, 2012, the company was downgraded from Buy to Neutral at Longbow.
  • On December 19, 2011, Collins Stewart initiated a Buy rating for the company.

Latest Developments

  • On June 1, 2012, Bed Bath & Beyond Inc. announced the all cash acquisition of Linen Holdings, LLC for approximately $105 million. Based in Gibbsboro, New Jersey, Linen Holdings, LLC is a privately-held, value-added distributor of bath, bed and table linens, other textile products and amenities to customers in the hospitality, cruise line, food service, healthcare and other industries.
  • On May 9, 2012, Bed Bath & Beyond Inc. and Cost Plus, Inc. jointly announced that it has entered into a definitive agreement under which Bed Bath & Beyond Inc. will acquire Cost Plus, Inc.
  • On April 6, 2012, Bed Bath & Beyond Inc. announced that for the first quarter of 2012, it expects modeling consolidated net sales to increase by 4% to 6% and modeling net earnings per diluted share (EPS) to be approximately $0.79 to $0.83.
  • On December 21, 2011, Bed Bath & Beyond Inc. announced that it is now modeling net earnings per diluted share to be approximately $1.28 to $1.33 for the fourth quarter of 2011, and approximately $3.86 to $3.92 for all of fiscal 2011.

Competitors

Bed Bath & Beyond Inc. operates in Home Furnishing Stores industry. The company could be compared to Pier 1 Imports, Inc. (PIR), Select Comfort Corporation (SCSS), and Williams-Sonoma Inc. (WSM). Below is the table comparison of the most important ratios between these companies and the industry:

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period:

Click to enlarge

BBBY Chart

BBBY data by YCharts

Competitors' Latest Development

  • On June 14, 2012, Pier 1 Imports, Inc. announced that for fiscal 2013, it expects comparable store sales growth in the mid single-digit range, earnings per share in the range of $1.08-$1.14, compared to prior guidance of $1.06 to $1.12.
  • On May 31, 2012, Pier 1 Imports, Inc. announced that first quarter 2013 earnings per share are expected to be approximately $0.16. According to I/B/E/S Estimates, analysts were expecting the company to report EPS of $0.16 for the first quarter of 2013.
  • On May 22, 2012, Williams-Sonoma, Inc. announced that for second quarter of 2012, it expects revenue to be in the range of $850-$870 million, non-GAAP diluted earnings per share in the range of $0.38-$0.41 and GAAP Diluted EPS of between $0.38-$0.41.
  • On April 25, 2012, Select Comfort Corp. announced it has entered into an amended credit agreement with Wells Fargo Bank, National Association. The amended credit agreement is unsecured, offers less restrictive covenants, reduces costs associated with the line of credit, and extends the maturity date of the credit facility from July 1, 2012, to April 23, 2015.
  • On April 18, 2012, Select Comfort Corp. announced that for fiscal 2012, it expects GAAP earnings per diluted share, including the $5.6 million non-recurring charge, to be within the previously communicated range of between $1.32 and $1.40, a 23% to 31% increase versus prior year.
  • On April 5, 2012, Pier 1 Imports, Inc. announced that its Board of Directors declared a $0.04 per share quarterly cash dividend on the Company's outstanding shares of common stock.
  • On April 5, 2012, Pier 1 Imports, Inc. announced that for fiscal 2013, it expects comparable store sales growth in the mid single-digit range, Earnings per share to be in the range of $1.06 to $1.12.
  • On March 8, 2012, Williams-Sonoma, Inc. announced that Sharon McCollam has retired from the Company and will also retire from the Company's Board of Directors on March 16, 2012.
  • On March 8, 2012, Williams-Sonoma, Inc. announced that for first quarter of 2012, it expects revenue to be in the range of $800-$820 million and non-GAAP diluted earnings per share in the range of $0.29-$0.32.
  • On February 27, 2012, Select Comfort Corp. announced that, effective June 1, 2012, chief operating officer (COO), Shelly Ibach, will succeed Bill McLaughlin as President and Chief Executive Officer (CEO) of the Company.
  • On February 8, 2012, Select Comfort Corp. announced that for fiscal 2012, it expects to increase earnings per diluted share by 23% to 31% to between $1.32 and $1.40. This outlook assumes company-controlled comparable sales growth of at least 15%.
  • On January 12, 2012, Williams-Sonoma, Inc. announced that it expects fourth quarter of 2011 diluted earnings per share to be in the range of $1.10 to $1.15 - which is at or marginally below the low end of the previous guidance range of $1.15 to $1.20 due to the promotional environment during the holiday season, net revenues in fourth quarter of 2011 are now expected to increase 3.3% to 5.0% to a range of $1.235 billion to $1.255 billion.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Bed Bath & Beyond