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

By Chris Lange Updated Mar 13, 10:13PM EDT · Published Jan 8, 11:10AM EST

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What to Expect When Bed Bath & Beyond Reports After the Close — © Raysonho @ Open Grid Scheduler / Grid Engine / Wikimedia Commons

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.

[nativounit]

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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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.