Bed Bath & Beyond Misses Where it Counts

Just the facts, Fool.

Seth Jayson
Seth Jayson
Sep 24, 2012 at 12:00AM
Other

Bed Bath & Beyond (Nasdaq: BBBY) reported earnings on Sep. 19. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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