What to Watch When Bed Bath & Beyond Reports Late Wednesday
Bed Bath & Beyond is set to release its fiscal third-quarter earnings report on Wednesday after the markets close.
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Bed Bath & Beyond Inc. (NASDAQ: BBBY) is set to release its fiscal third-quarter earnings report on Wednesday after the markets close. The consensus analyst forecast is $0.02 in earnings per share (EPS) and $2.85 billion in revenue. The same period of last year had $0.18 in EPS and $3.03 billion in revenue.
The company has just closed a huge sale-leaseback transaction, generating over $250 million in net proceeds. Overall, Bed Bath & Beyond sold roughly 2.1 million square feet of commercial space, including retail stores, a distribution facility and office space. The company will continue to occupy these properties pursuant to long-term leases.
The proceeds from this transaction may be used to reinvest in the company’s core business operations/ongoing business transformation efforts to drive growth, fund share repurchases, reduce the outstanding debt or some combination of these options.
Mark Tritton, Bed Bath & Beyond president and chief executive, commented:
We are pleased to complete this sale-leaseback transaction. This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value.
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Excluding Monday’s move, Bed Bath & Beyond had outperformed the broad markets, with its stock up about 40% in the past 52 weeks. Over the past quarter, the stock was up closer to 56%.
Here’s what a few analysts had to say ahead of the report:
- Merrill Lynch has a Buy rating and a $24 price target.
- Loop Capital has a Hold rating with a $15 price target.
- Telsey Advisory Group rates it as Outperform with an $18 target.
- Wedbush’s Outperform rating comes with an $18 price target.
- Raymond James has a Buy rating.
Shares of Bed Bath & Beyond traded up about 4% to $16.76 on Monday. The 52-week range is $7.31 to $19.57, and the consensus price target is $14.46.
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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.
