Bed Bath & Beyond Inc. (NASDAQ: BBBY) always beats earnings and seems to please Wall Street investors as Main Street consumers keep flocking to its stores. Perhaps there is a gap in the historic norm.
The retailer of home products reported that net earnings rose 24% to $0.89 per share, or $206.8 million, for the quarter. Net sales for the first quarter of 2012 were up just over 5% to $2.218 billion. Thomson Reuters had estimates of $0.85 EPS and $2.25 billion.
The company’s comparable same-store sales rose 3.0% in the quarter. Bed Bath & Beyond spent some $306 million to repurchase approximately 4.6 million shares during the quarter and the remaining balance of the current share repurchase program was approximately $613 million.
Here is the guidance: $0.97 to $1.03 per share for the coming second quarter, down well under the $1.08 EPS target from Thomson Reuters. For the year the company “continues to model net earnings per diluted share to increase by a high single to a low double digit percentage range for all of fiscal 2012, which will be 53 weeks.” Thomson Reuters was calling for growth of about 14%.
The reaction is far from the norm here. The retailer closed down 1.4% at $73.67 on the day, but shares are now down 10% at $66.00 in the after-hours session.
What investors have to ask if this is the peak of the growth story for Bed Bath & Beyond. It is acquiring Cost Plus, Inc. (NASDAQ: CPWM) but this is slowing of growth. We recently criticized this company as one of 20 dividend sinners because it pays nothing out in the form of a dividend. Maybe the company should consider paying out excess capital directly to all holders rather than absorbing shares that sellers want out of and shrinking its float.
JON C. OGG
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
