Bed Bath & Beyond Inc. (NASDAQ: BBBY) is out with its earnings report of $1.60 per share for its fourth quarter. The retail giant earned $1.68 per share a year ago, and estimates were $1.60 per share according to Thomson Reuters. Total revenue of approximately $3.203 billion represents a drop of 5.8% from net sales of approximately $3.401 billion a year earlier. Thomson Reuters had estimates of $3.22 billion. Same-store sales for the quarter increased by 1.7%.
Bed Bath & Beyond also said that it is targeting $0.92 to $0.96 per share for the coming quarter, which is short of the estimates of $1.02 per share and compares to $0.93 per share in the prior year’s equivalent quarter.
For the full year, Bed Bath & Beyond signaled that it is targeting earnings per share to grow by a mid-single digit percentage rate. The Thomson Reuters estimate of $5.27 would have been calling for growth of about 9.8%.
The company repurchased approximately $532 million of its common stock during this last quarter for close to 7.5 million shares. As of March 1, its remaining balance of the current share repurchase program was approximately $1.1 billion. Bed Bath & Beyond still pays no dividend.
Shares closed up $0.15 at $67.91 on Wednesday, but the stock’s initial reaction was down almost 4% at $65.20 in the after-hours session after the report. The stock’s 52-week range is $62.12 to $80.82 and this was a $70 stock as recently as last Friday.
ALSO READ: Eight Stocks To Buy After The Sell-Off
What you are seeing here is that Bed Bath & Beyond is simply having yet another negative reaction to yet another earnings report. This had been a secular growth story, but that has come to an end. At about 13-times forward earnings, now Bed Bath & Beyond is trying to pass itself off as a value stock.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.