Bed Bath & Beyond Sinks on Earnings
Bed Bath & Beyond shares sank after the retailer reported its fiscal third-quarter financial results late on Wednesday.
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 $0.85 in earnings per share (EPS) and $2.96 billion in revenue. The consensus estimates from Thomson Reuters called for $0.98 in EPS and revenue of $3.01 billion. The same period of last year reportedly had EPS of $1.09 and $2.95 billion in revenue.
Comparable sales in the third quarter of fiscal 2016 decreased by roughly 1.4%, compared with a decrease of about 0.4% in last year’s fiscal third quarter. Comparable sales from customer-facing digital channels grew in excess of 20%, while comparable sales from stores declined in the low single-digit percentage range.
During the third quarter of fiscal 2016, the company repurchased $76 million of its common stock, representing roughly 1.8 million shares, under its existing $2.5 billion share repurchase program. At the end of the quarter, the company had about $1.9 billion remaining in its repurchase program, and it is expected to be completed sometime in fiscal 2020.
[nativounit]
In terms of guidance for the fiscal year, the company expects to see its EPS at the low end of the range of $4.50 to $5.00. The consensus estimates call for $4.73 in EPS and $12.24 billion in revenue.
The board of directors also has declared a quarterly dividend of $0.125 per share, to be paid on April 18, 2017, to shareholders of record at the close of business on March 17.
On the books, Bed Bath & Beyond cash and cash equivalents totaled $473.0 million at the end of the quarter, versus $490.7 million in the same period from last year.
Shares of Bed Bath & Beyond were down over 7% at $42.11 on Thursday, with a consensus analyst price target of $ and a 52-week trading range of $38.60 to $52.71.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
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.
