Bed Bath & Beyond Earnings: Shareholders aren’t Please with These Results

S&P 500 (NYSE:SPY) component Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported its results for the third quarter. Bed Bath & Beyond is a chain of retail stores that sells products for the home.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Bed Bath & Beyond Inc. Earnings Cheat Sheet

Results: Net income for Bed Bath & Beyond Inc. rose to $232.8 million ($1.03 per share) vs. $228.5 million (95 cents per share) in the same quarter a year earlier. This marks a rise of 1.8% from the year-earlier quarter.

Revenue: Rose 15.3% to $2.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bed Bath & Beyond Inc. was about in line with expectations as the mean analyst estimate of $1.02 per share. It beat the average revenue estimate of $2.25 billion.

Quoting Management: “Our Board authorized this new share repurchase program based upon its continued confidence in our Company’s long-term growth potential, financial outlook and cash flow generation,” said Steven Temares, Chief Executive Officer and Member of the Board of Directors. “It is anticipated that this $2.5 billion share repurchase program will be funded from current cash and future cash flows. That said, our Company’s Board of Directors continues to review our capital structure on an ongoing basis. In addition to providing value to our shareholders through share repurchase programs, our strong operations should allow us to continue to invest in our infrastructure and maintain our flexibility to take advantage of opportunities as they may arise.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 12.1% to $2.59 billion in the second quarter. The figure rose 5.1% in the first quarter from the year earlier and climbed 9.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 98 cents versus a mean estimate of net income of $1.02 per share.

Last quarter’s profit increase comes after net income dropped in the prevoius quarter. In the second quarter, net income declined 2.2% to $224.3 million.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.77 per share to $1.75, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $4.62 per share, down from $4.67 ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)