I think the best comment on BBBY's watning comes from Raymond James' Budd Bugatch & Rexford Henderson:
They note that frankly, in a normal environment, investors could expect the shares to deflate significantly. The environment, however, is anything but normal, and this fact - and the fact that earnings will still advance over last year's $0.35 and comparable sales are positive at +1.6% - likely mollifies the damage that will afflict the opening share price. While they, as interested students of the company, bemoan the fact that management does not actively engage in a dialog with investors, Bed Bath & Beyond's status as the premier retailer of home furnishings product remains unquestioned. Accordingly, they expect that the shares will open down, reflecting the novelty of the miss, and may trade better afterward as investors reflect on the economic reality. Maintain Outperform.
Notablecalls: So, it looks like RayJay is making a bounce call here.
They note that frankly, in a normal environment, investors could expect the shares to deflate significantly. The environment, however, is anything but normal, and this fact - and the fact that earnings will still advance over last year's $0.35 and comparable sales are positive at +1.6% - likely mollifies the damage that will afflict the opening share price. While they, as interested students of the company, bemoan the fact that management does not actively engage in a dialog with investors, Bed Bath & Beyond's status as the premier retailer of home furnishings product remains unquestioned. Accordingly, they expect that the shares will open down, reflecting the novelty of the miss, and may trade better afterward as investors reflect on the economic reality. Maintain Outperform.
Notablecalls: So, it looks like RayJay is making a bounce call here.
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