Bed Bath & Beyond
The 10-second takeaway
For the quarter ended Nov. 24 (Q3), Bed Bath & Beyond met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins shrank across the board.
Bed Bath & Beyond booked revenue of $2.70 billion. The 24 analysts polled by S&P Capital IQ predicted sales of $2.72 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $2.34 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 $1.03. The 26 earnings estimates compiled by S&P Capital IQ forecast $1.02 per share. GAAP EPS of $1.03 for Q3 were 8.4% higher than the prior-year quarter's $0.95 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%, 110 basis points worse than the prior-year quarter. Operating margin was 13.4%, 180 basis points worse than the prior-year quarter. Net margin was 8.6%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.41 billion. On the bottom line, the average EPS estimate is $1.67.
Next year's average estimate for revenue is $10.93 billion. The average EPS estimate is $4.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,102 members out of 1,319 rating the stock outperform, and 217 members rating it underperform. Among 443 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 402 give Bed Bath & Beyond a green thumbs-up, and 41 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 $75.39.
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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.