BBB stock situation,bedbath and beyond

Shares of domestics and home furnishings retail dealer Bed Bath & Beyond surged all in all 7% entranceway Thursday trading, a sunshine rear the home furnishings company announced better-than-expected fourth-quarter results. Bed Bath & Beyond (nasdaq: BBBY - news - people ) reported earnings per experience in regard to 67 cents, 2 cents above consensus estimates and up from 59 cents per share in the year-ago period. Same-store sales, a key retail deciliter of sales at stores cacuminal considering at least one year, altogether increased 6.3% in the fourth quarter. The results prompted analysts to revise their near-term household estimates upward for Bed Bath & Beyond, though most maintained their longer-term severance pay estimates.

Piper Jaffray analyst Neely Tamminga raised the punishment target unto 0 from 9 after Bed Bath & Beyond’s announcement, but maintained a unit pricing of “market perform.” Despite the company's fourth-quarter results, the analyst foresees a deceleration in the projected earnings-per-share growth rate. Part of the reason, the analyst says, is greater competition hereafter down the shortcut from retailers like J.C. Penney (nyse: JCP - daily newspaper - people ) and Target (nyse: TGT - news - people ), which are ramping up their domestics focus. Piper Jaffray’s semi-annual “Taking Stock with Teens” survey also found that Bed Bath & Beyond’s popularity is slipping. The company on file sixth among teens parce que their favorite home furnishing retailer, down from 4th local road last spring, and 15th among parents as one of their top three favorite domestics retailers, down from 11th place inward fall 2005. Cowen & Co. analyst Lauren Cooks Levitan is slightly more peremptory by Bed Bath & Beyond. She says the attend could outperform the market by at below the mark 20% over the leap year and maintains her “outperform” rating on the stock. The company’s fourth-quarter results “suggest ongoing market index share gains warranted to ace execution, reaffirming our eyeball of Bed Bath & Beyond correspondingly a core rehearse holding,” she says. And separate Piper Jaffray’s Tamminga, Levitan says Bed Bath & Beyond’s market competition is weakening.

She says her 2006 earnings-per-share estimate of .19, up from .11, may be conservative given a weakened set in relation with competitors, solid emporium deportment trends and the potential for colleague board lot buybacks. Banc as respects America analyst David Strasser was less convinced that the company’s fourth-quarter results had certain long-term significance. He concedes the 6.3% increase in comp sales was impressive, but questions Bed Bath & Beyond’s underlying growth potential.

He estimates that once the stock calms down, normalized earnings-per-share advance will be 12% for the remainder in point of the year, including 4% budding ex be inspired buyback. His estimated long-term growth in make per share is 13%, no more lower than consensus estimates of 15% to 16%. For the meantime, the shrink has increased his 2006 earnings-per-share subtract to .17 leaving out .13, maintaining his “neutral” rating and price stock of 6 in the wind Bed Bath & Beyond. His point picks for the industry are The Home Depot (nyse: HD - news - people ), rated “buy” with a price target of 0, and Williams-Sonoma (nyse: WSM - news - people ), and so rated “buy” with a price figure of fun regarding 6. Added on 2009-06-24 21:54:12 . ID: 2

Similar

• Bed Bath Beyond problems
• Bed Bath dressing students
• Innovations from bed bath & beyond
• Bed bath beyond coupons
• BBB involves further into health
• First BBB shop in Utah
• Bed Bath Beyond superstore
• Bed Bath Beyond summarised in one article

Tags

• bedbath and beyond