Can Bed Bath & Beyond Buck A Weak Consumer? (BBBY)

After today’s close we’ll get to see earnings numbers out of Bed Bath & Beyond (NASDAQ: BBBY).  First Call has estimates pegged at $0.52 EPS on revenues of $1.77 Billion, and this next quarter expectations are $0.78 EPS on $2.08 Billion in revenues.

We’d be really cautious on this one ahead of earnings because of a weak retail environment and a soft consumer in anything tied to the home, although with a $28.36 close it is at the bottom of its $27.96 to $43.32 trading range over the last 52-weeks.  Even after losing one-third of its value it still has a $7.5 Billion market cap.

Analysts still have a price target average of roughly $36.00 from a mixed grouping of opinions.  This will be the first chance to see how much of the $1 Billion share buyback plan announced in September 2007 that was really used.

Because this is retail, and tied to items used in the home, it is really hard to get very excited about.  The good news is that after losing one-third of its value you might expect that a large part of a dull quarter was already priced in.

It is important to draw the line on this earnings date though as being the end of November 2007, so the holiday sales will only be seen in this next quarter’s guidance.

Jon C. Ogg
January 3, 2008