Diamonds and Dogs

04/05/2012

Ruby Tuesday Inc. (RT)

Ruby Tuesday is serving up burnt hamburgers to its investors today, down 18.24% at $7.26. Ruby Tuesday reported its quarterly earnings, which came in significantly lower than last year. Earnings were at $4.5 million compared to the $16 million stated at the same time last year. Furthermore the company forecasted their full-year earnings per share at 43-48 cents per share, below analysts' estimates of 56 cents per share. CEO Sandy Beall blamed their earnings on tough competition with their competitors outperforming them on "television advertising levels." To rectify their problems the company plans to close 25 to 27 of their worst performing stores. Ruby Tuesday should drop the Ruby from their name because they have nothing sparkling today.

Bed Bath and Beyond Inc. (BBBY)

Bed Bath and Beyond, is well beyond expectations today, up 8.49% at $71.85. A conference call last night delivered good news for Bed Bath and Beyond. Co-Chairman Warren Eisenberg reported that the company would be opening 40 new stores in 2012, as well as earnings per diluted share increasing around 32%. Due to the positive information analysts price targets increased to $80-$82 per share. Bed Bath and Beyond is up around 24% year to date, reaching a new high. Many companies in the home furnishings industry are doing well, showing some positive signs about the economy. Whatever Bed Bath and Beyond is selling in the Beyond section of the store, seems to be working for the company.

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