Whisper Number: What Will Bed Bath & Beyond’s Shares Do Post-Earnings?

Bed Bath & Beyond Inc. (NASDAQ:BBBY) is expected to report earnings on Wednesday, September 25.  The whisper number is $1.18, three cents ahead of the analysts’ estimate. Whispers range from a low of $1.16 to a high of $1.21. BBBY has a 82 percent positive surprise history, having topped the whisper in 32 of the 21 earnings reports for which we have data.

Earnings history:

- Beat whisper: 13 qtrs
– Met whisper: 1 qtrs
– Missed whisper: 6 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe.

BBBY913A

The strongest price movement of +1.0 percent comes within one trading day when the company reports earnings that beat the whisper number, and -1.9 percent within ten trading days when the company reports earnings that miss the whisper number. Although the strongest price moves are ‘opposite’, the overall average price move is ‘negative’ (beat the whisper number and see weakness, miss and see weakness) when the company reports earnings.