Why Bed Bath & Beyond Was Slammed Despite Topping Estimates
Bed Bath & Beyond reported its most recent quarterly results before the markets opened on Wednesday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported its most recent quarterly results before the markets opened on Wednesday. This a stock previously targeted by Reddit’s WallStreetBets because of its sizable short position, but today it seems the short sellers are winning.
The firm said that it had $0.40 in earnings per share (EPS) on $2.6 billion in revenue, which compares with consensus estimates of $0.31 in EPS and $2.63 billion in revenue. The fourth quarter of last year reportedly had EPS of $0.38 and revenue of $3.11 billion.
Comparable sales increased for the third consecutive quarter, with total enterprise comparable sales growth of 4%, led by strong digital growth of roughly 86%. However, comparable store sales decreased 20% in the quarter.
Net sales decreased 16% compared year over year, driven by impacts from previously planned banner divestitures and permanent store closures. Excluding these impacts of about 12%, core banner net sales decreased roughly 3%, primarily due to store closing activity. Total store net sales decreased 27%, but this was somewhat offset by massive digital sales.
[nativounit]
Looking ahead to the fiscal 2021 full year, the company expects to see sales in the range of $8.0 billion to $8.2 billion and adjusted EBITDA between $500 million and $525 million. Consensus estimates are calling for $1.31 in EPS on $8.18 billion in revenue for the full year.
On the books, Bed Bath & Beyond’s cash, cash equivalents and restricted cash came in at $1.4 billion, an increase of $384 million from last year. Note that the company has total liquidity of $2.1 billion, including the firm’s revolving credit facility.
Bed Bath & Beyond stock traded down over 14% to $24.01 Wednesday morning. That was in a 52-week range of $4.32 to $53.90. The consensus price target is $27.96.
[recirclink id=862878][wallst_email_signup]
Contact [email protected] for any questions or corrections.
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.
