Bed Bath & Beyond Beats Analyst Estimates on EPS

Bed Bath & Beyond (Nasdaq: BBBY ) reported earnings on Dec. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ending Nov. 26 (Q3), Bed Bath & Beyond met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share increased significantly.

Gross margins were steady, operating margins expanded, and net margins improved.

Revenue details
Bed Bath & Beyond tallied revenue of $2.3 billion. The 23 analysts polled by S&P Capital IQ expected sales of $2.4 billion. Sales were 6.8% higher than the prior-year quarter's $2.2 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.95. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.89 per share. GAAP EPS of $0.95 for Q3 were 28% higher than the prior-year quarter's $0.74 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.9%, about the same as the prior-year quarter. Operating margin was 15.2%, 130 basis points better than the prior-year quarter. Net margin was 9.8%, 120 basis points better than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $2.7 billion. On the bottom line, the average EPS estimate is $1.30.

Next year's average estimate for revenue is $9.4 billion. The average EPS estimate is $3.83.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,012 members out of 1,214 rating the stock outperform, and 202 members rating it underperform. Among 453 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 409 give Bed Bath & Beyond a green thumbs-up, and 44 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bed Bath & Beyond is outperform, with an average price target of $66.13.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Bed Bath & Beyond. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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