Earnings Preview: Bed Bath & Beyond (BBBY)

Bed Bath & Beyond Inc. BBBY is currently higher on the session by 0.10%, trading at $42.00. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q2 earnings per share of $0.63 on revenue of $2.10 billion. These estimates have stayed the same over the past 90 days. The Whisper number for BBBY is $0.66. • Guidance The Street is looking for Q3 EPS of $0.64 on revenue of $2.10 billion. The full year 2011 estimates are $2.71 per share on revenue of $8.47 billion; FY 2012 is at $3.05 per share on revenues of $9.06 billion. • Technical Picture BBBY has been rather volatile over the past few years, staging a huge rally off the November 2008 lows, when the stock was trading near $20.00, only to get stopped in its tracks at $48.50 back in April of this year. On a near-term basis, the stock has based sideways around $36.00 and recently moved higher, above the 50-day moving average. The stochastics say that BBBY is slightly overbought at these levels. • Volatility Both historical volatility and implied volatility have been down-trending over the past few months after a spike higher in mid-May. Currently HI is at 29% and IV is at 33%. The front month $42.00 straddle is trading at 35.83%; the November $42.00 straddle is trading at 33.10% Bed Bath & Beyond Inc., along with its subsidiaries, is a chain of retail stores, operating under the names Bed Bath & Beyond, Christmas Tree Shops, Harmon and Harmon Face Values, and buybuy BABY. In addition, the company is a partner in a joint venture, which operates two stores in the Mexico City market under the name Home & More. The company sells an assortment of domestics merchandise and home furnishings, which include food, giftware, health and beauty care items, and infant and toddler merchandise. As of February 27, 2010, Bed Bath & Beyond Inc. operated 1,100 stores located in 49 states, the District of Columbia, Puerto Rico and Canada, including 965 BBB stores operating in 49 states, the District of Columbia, Puerto Rico and Canada; 61 CTS stores operating in 15 states; 45 Harmon stores operating in three states, and 29 buybuy BABY stores operating in 14 states. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.