NEW YORK (TheStreet) -- Bed Bath & Beyond (BBBY) - Get Report stock is decreasing by 4.36% to $49.08 on heavy trading volume on Wednesday morning, after the company reduced its earnings and revenue guidance for the fiscal 2015 third quarter.

The home products retailer lowered its earnings guidance to $1.07 to $1.10 per share from the previous outlook of $1.14 to $1.21 per share.

Revenue is expected to rise by 0.3% year-over-year to $3 billion for the quarter, below the initial guidance of a 1.8% to 4% growth.

Comparable stores sales are estimated to drop by 0.4%, compared with the previous outlook of a 1% to 3% increase.

"These are good merchants, but the world has passed them by," TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUSportfolio, said on CNBC's Squawk on the Street this morning.

Cramer added that the retailer has fallen behind online retailers like Amazon.com (AMZN), which is taking over the market for home products.

The company will report its fiscal 2015 third quarter financial results after the market close on January 7.

So far today, 3.28 million shares of Bed Bath & Beyond have exchanged hands, compared with its average daily volume of 2.36 million shares.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate BED BATH & BEYOND INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.3%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.35 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Net operating cash flow has decreased to $255.31 million or 30.54% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Specialty Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 9.9% when compared to the same quarter one year ago, dropping from $223.95 million to $201.68 million.
  • You can view the full analysis from the report here: BBBY