Earnings Preview For Bed Bath & Beyond (BBBY)

Bed Bath & Beyond BBBY will be reporting 2011 fiscal fourth-quarter earnings after the bell today. Analysts are expecting the company to post a profit of $0.97 on revenues of $2.39 billion. Earnings would grow 13% over last year if the target is hit. The company is generally considered to be conservative in its guidance, so there could be some upside to the consensus estimate. The company 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, and general home furnishings. The consensus estimate for the quarter has ticked up $0.01 over the past month with four different analysts raising their numbers. Over the past four quarters, the company has exceeded estimates each time with a minimum positive surprise of 8.30%. The stock is within striking distance of its 52-week high of $50.95, and could get there with a strong report. BBBY sports a P/E ratio of 14.5x based on 2011 estimates, which is well below rivals such as Hibbett Sports HIBB at 19.9x, and Dick's Sporting Goods DKS at 20.7x. This suggests that the stock has upside provided the company exceeds estimates and provides a rosy outlook for the rest of 2011.