Bed Bath & Beyond Back to Mixed Earnings Trouble
ThinkstockBed Bath & Beyond Inc. (NASDAQ: BBBY) reported its third-quarter earnings Thursday after the market close as $1.23 in earnings per share and $2.94 billion in revenue, against Thomson Reuters consensus estimates of $1.19 in earnings per share and $2.97…
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Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported its third-quarter earnings Thursday after the market close as $1.23 in earnings per share and $2.94 billion in revenue, against Thomson Reuters consensus estimates of $1.19 in earnings per share and $2.97 billion in revenue. The third quarter from the previous year had $1.12 in earnings per share and $2.86 billion in revenue.
The company gave guidance for the fourth quarter in the range of $1.78 to $1.83 in earnings per share. Thomson Reuters has the consensus estimate at $1.80 in earnings per share.
In the second quarter Bed Bath & Beyond bought back approximately $1 billion in stock, which was nearly four times the size of the first quarter’s $273 million in share repurchases. The $1.1 billion accelerated share repurchase program, which commenced in July 2014, was completed in December 2014. As of November 29, 2014, the remaining balance of the $2.0 billion share repurchase program was approximately $1.8 billion.
The company had over $1 billion in cash and cash equivalents at the end of the third quarter. This was versus $367 million at the beginning of the period. Retailers sure love that holiday-backed quarter.
24/7 Wall St. included a few recent key analyst calls for Bed Bath & Beyond:
- Barclays maintained an Overweight rating and raised its price target to $87 from $70 on January 6
- Citigroup reiterated a Hold rating and raised its price target to $80 from $70 on January 5
- Canaccord Genuity upgraded Bed Bath & Beyond to a Buy rating from Hold and raised its price target to $91 from $66 on January 2
Shares of Bed Bath & Beyond closed Thursday up 1.6% at $79.45. Following the earnings report, the initial response in the post market was negative and shares were down over 5% at $75.15.
The company’s stock has a consensus analyst price target of $67.90 and a 52-week trading range of $54.96 to $79.62. It has a market cap of $14 billion.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
