Bed Bath & Beyond
The 10-second takeaway
For the quarter ended Feb. 25 (Q4), Bed Bath & Beyond beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins expanded, net margins improved.
Bed Bath & Beyond reported revenue of $2.73 billion. The 22 analysts polled by S&P Capital IQ foresaw revenue of $2.66 billion on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $2.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.48. The 25 earnings estimates compiled by S&P Capital IQ predicted $1.33 per share. GAAP EPS of $1.48 for Q4 were 31% higher than the prior-year quarter's $1.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.6%, 40 basis points worse than the prior-year quarter. Operating margin was 20.2%, 180 basis points better than the prior-year quarter. Net margin was 12.8%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.24 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $10.22 billion. The average EPS estimate is $4.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,027 members out of 1,231 rating the stock outperform, and 205 members rating it underperform. Among 450 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 412 give Bed Bath & Beyond a green thumbs-up, and 38 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 $67.73.
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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.