Image source: Bed Bath & Beyond Inc.

What happened

Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) were down 9.9% as of 3:30 p.m. EST Wednesday after the specialty retailer announced weaker-than-expected fiscal third-quarter 2016 results.

So what

Quartelry revenue fell 0.1% year over year, to $2.96 billion, as more than 20% growth from customer-facing digital channels was more than offset by low single-digit percent declines in comparable sales from stores. On the bottom line, that translated to net earnings of $126.4 million, or $0.85 per diluted share, down from $177.8 million, or $1.09 per share in last year's fiscal Q3.

By comparison -- and though we don't typically pay close attention to Wall Street's quarterly demands -- analysts' consensus estimates predicted Bed Bath & Beyond would achieve higher revenue of $3.01 billion, and earnings of $0.98 per share.

Now what

As such, Bed Bath & Beyond now anticipates full fiscal 2016 earnings per diluted share will be at the low end of the $4.50 to (just over) $5.00 range it told investors to expect last quarter. Bed Bath & Beyond also noted that its earnings have fallen within that range "over the past several years, during a heavy investment phase."

That's not to say Bed Bath & Beyond's results were as jaw-droppingly bad as today's plunge seems to indicate. And with shares now trading at around 9 times this year's expected earnings, perhaps value-seeking investors might be enticed to take advantage. But given Bed Bath & Beyond's underwhelming performance, it's no surprise to see investors taking a step back today.