Bed Bath & Beyond Stumbles Despite Strong Q3 Results

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When Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported its fiscal third-quarter financial results after the markets closed on Wednesday, the retailer said that it had $0.44 in earnings per share (EPS) on $2.95 billion in revenue. That compares with consensus estimates from Thomson Reuters of $0.36 in EPS and revenue of $2.9 billion. The same period of last year reportedly had EPS of $0.85 and $2.96 billion in revenue.

During the most recent quarter, comparable sales decreased by roughly 0.3%. Comparable sales from customer-facing digital channels continued to have strong growth, while comparable sales from stores declined in the low-single-digit percentage range during the fiscal 2017 third quarter.

Looking ahead to the fiscal year, the company expects to see EPS of roughly $3.00. The consensus estimates call for $2.99 in EPS and $12.23 billion in revenue for the full fiscal year.

Along with these results, the board of directors declared a quarterly dividend of $0.15 per share, which will be paid April 17, 2018, to shareholders of record on March 16, 2018.

In this quarter, the company repurchased approximately $24 million of its common stock, representing about 929,000 shares, under its existing $2.5 billion share repurchase program. At the end of the quarter, the program had a remaining balance of roughly $1.5 billion.

Bed Bath & Beyond’s cash and cash equivalents totaled $453.1 million at the end of the quarter, down from $473.0 million in the same period of last year.

Shares of Bed Bath & Beyond closed Wednesday at $24.57, with a consensus analyst price target of $23.47 and a 52-week range of $19.07 to $44.29. In early trading indications Thursday, the stock was down about 6% at $23.13.