One of the leading operators of specialty retail stores in the
U.S. and Canada,
Bed Bath & Beyond Inc.
) is set to report its fourth-quarter fiscal 2012 results on Apr
10. Last quarter, it posted a positive surprise of approximately
1.0%. Now, let us see how things are shaping up for this
Growth Factors in the Past Quarter
Bed Bath & Beyond's improved comparable store sales
performance and new store openings resulted in robust top-line
growth in the last-reported quarter. The quarter also benefited
from the acquisition of World Market and Linen Holdings. On the
back of these factors, Bed Bath & Beyond's earnings increased
8.4% year over year to $1.03 per share and surpassed the Zacks
Consensus Estimate by a penny.
Additionally, we are impressed by the company's initiatives of
expanding and renovating stores as well as its focus on
refreshing its merchandise mix to boost productivity. We believe
that these initiatives along with its focus on boosting online
presence and making technological advancements would bode well
for future sales.
Our proven model does not conclusively show that Bed Bath
& Beyond is likely to beat earnings this quarter. This is
because a stock needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. However, this
is not the case here, owing to the following factors:
ESP for Bed Bath & Beyond is 0.00%. This is because the Most
Accurate Estimate stands at $1.68, which is in line with the
Zacks Consensus Estimate.
Zacks #3 Rank (Hold):
Bed Bath Beyond's Zacks Rank #3 (Hold) lowers the predictive
power of ESP because the Rank #3, when combined with a 0.00% ESP
makes surprise prediction difficult. We caution against stocks
with Zacks Ranks #4 and #5 (Sell rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that these have the right combination of elements to
post an earnings beat this quarter.
) with an Earnings ESP of +5.46% and a Zacks Rank #1 (Strong
) with an Earnings ESP of +19.15% and a Zacks Rank #1 (Strong
) has an Earnings ESP of +5.56% and carries a Zacks Rank #1
BED BATH&BEYOND (BBBY): Free Stock Analysis
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