Bed Bath & Beyond Inc. Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for the home furnishing store rose to $228.5 million (95 cents per share) vs. $188.6 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 21.2% from the year earlier quarter.

Revenue: Rose 6.8% to $2.34 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BBBY beat the mean analyst estimate of 88 cents per share. Analysts were expecting revenue of $2.35 billion.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 26.2% and in the first quarter, the figure rose 31.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 9 cents in the second quarter, by 10 cents in the first quarter, and by 15 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.3% to $2.31 billion in the second quarter. The figure rose 9.7% in the first quarter from the year earlier and climbed 11.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company’s cost of sales rose 6.8% from a year earlier. Last quarter, cost of sales was 59.1% of revenue, similar to a year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.28 a share to $1.30 over the last ninety days. The average estimate for the fiscal year is $3.83 per share, a rise from $3.67 ninety days ago.

Competitors to Watch: Kirkland’s, Inc. (NASDAQ:KIRK), Williams-Sonoma, Inc. (NYSE:WSM), Pier one Imports, Inc. (NYSE:PIR), Walmart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST).

Stock Performance: Shares of BBBY were down 0.2% from the previous close.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

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