Bed Bath & Beyond Stumbles Despite Strong Q3 Results
Bed Bath & Beyond reported better-than-expected fiscal third-quarter financial results late Wednesday but shares pulled back early Thursday.
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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.
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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.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
