Bed Bath & Beyond
The 10-second takeaway
For the quarter ended March 2 (Q4), Bed Bath & Beyond beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share increased.
Margins shrank across the board.
Revenue details
Bed Bath & Beyond reported revenue of $3.40 billion. The 24 analysts polled by S&P Capital IQ wanted to see net sales of $3.35 billion on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $2.73 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 $1.68. The 27 earnings estimates compiled by S&P Capital IQ averaged $1.68 per share. GAAP EPS of $1.68 for Q4 were 14% higher than the prior-year quarter's $1.48 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 41.0%, 160 basis points worse than the prior-year quarter. Operating margin was 17.6%, 260 basis points worse than the prior-year quarter. Net margin was 11.0%, 180 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $2.59 billion. On the bottom line, the average EPS estimate is $0.94.
Next year's average estimate for revenue is $11.68 billion. The average EPS estimate is $5.02.
Investor sentiment
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 $69.13.
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