Bed Bath & Beyond
The 10-second takeaway
For the quarter ended June 1 (Q1), Bed Bath & Beyond met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Margins shrank across the board.
Bed Bath & Beyond reported revenue of $2.61 billion. The 23 analysts polled by S&P Capital IQ anticipated a top line of $2.60 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $2.22 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 $0.92. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. Non-GAAP EPS of $0.92 for Q1 were 3.4% higher than the prior-year quarter's $0.89 per share. GAAP EPS of $0.93 for Q1 were 4.5% higher than the prior-year quarter's $0.89 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 39.5%, 50 basis points worse than the prior-year quarter. Operating margin was 12.4%, 170 basis points worse than the prior-year quarter. Net margin was 7.8%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.81 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $11.64 billion. The average EPS estimate is $4.98.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,120 members out of 1,328 rating the stock outperform, and 208 members rating it underperform. Among 484 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 446 give Bed Bath & Beyond a green thumbs-up, and 38 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 $72.26.
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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 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.