Bed Bath & Beyond Earnings: Revenue Misses, Slowing Growth a Concern

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

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Bed Bath & Beyond Inc. Earnings Cheat Sheet

Results: Net income for Bed Bath & Beyond Inc. rose to $206.8 million (89 cents per share) vs. $180.6 million (72 cents per share) in the same quarter a year earlier. This marks a rise of 14.5% from the year-earlier quarter.

Revenue: Rose 5.1% to $2.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bed Bath & Beyond Inc. beat the mean analyst estimate of 84 cents per share. Analysts were expecting revenue of $2.25 billion.

Key Stats:

Bed Bath & Beyond (NASDAQ:BBBY) has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 23.8% and in the third quarter of the last fiscal year, the figure rose 21.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 15 cents in the fourth quarter of the last fiscal year, by 7 cents in the third quarter of the last fiscal year, and by 9 cents in the second quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 9.1% to $2.73 billion in the fourth quarter of the last fiscal year. The figure rose 6.8% in the third quarter of the last fiscal year from the year earlier and climbed 8.3% in the second quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to $1.08 per share from $1.06. For the fiscal year, the average estimate has moved up from $4.47 a share to $4.63 over the last ninety days.

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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