Bed Bath & Beyond Earnings: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported net income above Wall Street’s expectations for the fourth quarter. Bed Bath & Beyond is a chain of retail stores that sells products for the home.

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Bed Bath & Beyond Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Bed Bath & Beyond Inc. rose to $351 million ($1.48 per share) vs. $283.5 million ($1.12 per share) in the same quarter a year earlier. This marks a rise of 23.8% from the year-earlier quarter.

Revenue: Rose 9.1% to $2.73 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bed Bath & Beyond Inc. beat the mean analyst estimate of $1.33 per share. It beat the average revenue estimate of $2.35 billion.

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 21.2% and in the second quarter, the figure rose 26.2%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 7 cents in the third quarter, by 9 cents in the second quarter, and by 10 cents in the first quarter.

Gross margin shrank 0.4 percentage point to 42.6%. The contraction appeared to be driven by increased costs, which rose 9.8% from the year earlier quarter while revenue rose 9.1%.

Revenue has increased for four consecutive quarters. Revenue increased 6.8% to $2.34 billion in the third quarter. The figure rose 8.3% in the second quarter from the year earlier and climbed 9.7% in the first quarter from the year-ago quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is 83 cents per share, up from 82 cents ninety days ago. The average estimate for the fiscal year is $3.95 per share, a rise from $3.83 ninety days ago.

Competitors to Watch: Kirkland’s, Inc., Williams-Sonoma, Inc., Pier one Imports, Inc., Tradeshow Marketing Co Ltd, easyhome Ltd., and Globalvalue Plc.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com