Build-A-Bear Workshop Earnings: Here’s Why Investors are Not Happy Now

Build-A-Bear Workshop Inc. (NYSE:BBW) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4%.

Build-A-Bear Workshop Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.13 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Decreased 0.78% to $118.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Build-A-Bear Workshop Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.31. It beat the average revenue estimate of $116.45 million.

Quoting Management: Maxine Clark, Build-A-Bear Workshop’s Chief Executive commented, “While we are disappointed with our overall results, in the fourth quarter, we increased comparable store sales in North America showing a marked improvement from the third quarter. This increase was driven by the initial benefit of our brand building marketing campaigns, particularly in the U.S., and a return to traditional holiday product offerings. The UK remained challenging, which drove down our consolidated comparable store sales.”

Key Stats (on next page)…

Revenue increased 37.49% from $85.97 million in the previous quarter. EPS increased to $0.13 in the quarter versus EPS of $-0.26 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.06 to a loss of $0.02. For the current year, the average estimate has moved down from a loss of $0.33 to a loss of $0.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)