What to Expect When Bed Bath & Beyond Reports After the Close

Retail

Published: January 8, 2020 11:10 am

Last Updated: March 13, 2020 10:13 pm

Bed Bath & Beyond Inc. (NASDAQ: BBBY) is scheduled to release its fiscal third-quarter financial results after the markets close on Wednesday. The consensus estimates are calling for $0.02 in earnings per share (EPS) and $2.85 billion in revenue. The same period of last year reportedly had $0.18 in EPS and $3.03 billion in revenue.

The company has just closed a huge sale-leaseback transaction, generating over $250 million in net proceeds. Overall, Bed Bath & Beyond sold roughly 2.1 million square feet of commercial space, including retail stores, a distribution facility and office space. The company will continue to occupy these properties pursuant to long-term leases.

The proceeds from this transaction may be used to reinvest in the company’s core business operations/ongoing business transformation efforts to drive growth, fund share repurchases, reduce the outstanding debt or some combination of these options.

Mark Tritton, Bed Bath & Beyond president and chief executive, commented:

We are pleased to complete this sale-leaseback transaction. This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value.

Excluding Wednesday’s move, Bed Bath & Beyond had outperformed the broad markets, with the stock up about 39% in the past 52 weeks. Over the past quarter alone, the stock was up closer to 65%.

A few analysts weighed in on Bed Bath & Beyond ahead of the report:

Merrill Lynch has a Buy rating and a $24 price target.
Loop Capital has a Hold rating with a $15 price target.
Telsey Advisory Group rates it as Outperform with an $18 target.
Wedbush’s Outperform rating comes with an $18 price target.
Raymond James has a Buy rating.
Morgan Stanley has a Hold rating with a $12 price target.
UBS has a Neutral rating with an $11 target price.

Shares of Bed Bath & Beyond traded down less than 1% at $16.75 on Wednesday, in a 52-week range of $7.31 to $19.57. The consensus price target is $14.75.

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