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.
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 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.
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.)
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.
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.
Is Bed Bath & Beyond the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Bed Bath & Beyond to My Watchlist.
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 recommends 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.
More from The Motley Fool
Why Bed Bath & Beyond Stock Plunged 46% in 2017
Profits slumped as the retailer cut prices in response to weak demand.
Bed Bath & Beyond's New Store Strategy Carries Risk
The home furnishings specialist wants its stores to be a springboard for a turnaround.
Bed Bath & Beyond (BBBY) Q3 2017 Earnings Conference Call Transcript
BBBY earnings call for the period ending November 25, 2017.