Bed Bath & Beyond
The 10-second takeaway
For the quarter ended Aug. 25 (Q2), Bed Bath & Beyond met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins contracted across the board.
Bed Bath & Beyond recorded revenue of $2.59 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $2.60 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.31 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 $0.98. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. GAAP EPS of $0.98 for Q2 were 5.4% higher than the prior-year quarter's $0.93 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 39.8%, 130 basis points worse than the prior-year quarter. Operating margin was 14.1%, 200 basis points worse than the prior-year quarter. Net margin was 8.7%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.74 billion. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $10.97 billion. The average EPS estimate is $4.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,077 members out of 1,295 rating the stock outperform, and 218 members rating it underperform. Among 423 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 376 give Bed Bath & Beyond a green thumbs-up, and 47 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 $75.55.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.