Bed Bath & Beyond Inc. (NASDAQ: BBBY) is scheduled to release its fiscal first-quarter financial results after the markets close on Wednesday. Consensus estimates from Thomson Reuters call for $0.86 in earnings per share (EPS) on $2.78 billion in revenue. That would compare with the $0.93 in EPS on $2.74 billion posted in the same period of last year.
This retail giant of household products has been public for almost 25 years now. Bed Bath & Beyond had a very strong growth story for years, but that was before its recent spate of problems meeting earnings estimates or keeping guidance up. The company has turned to stock buybacks to boost earnings and shrink its float, but it gets to keep buying back stock at lower and lower share prices due to those disappointing headwinds.
Bed Bath & Beyond shares peaked at roughly $70 but had dipped back to under $50 by the start of 2016 and mostly stayed there so far this year. Analysts have seemingly thrown in the towel and revenue growth has all but stalled. Still, with $5.00 or more in EPS power and only $1.5 billion in long-term debt, this retail giant needs to start paying a dividend now that its growth prospects seem to have peaked.