Bed Bath & Beyond Beats Analyst Estimates on EPS

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Bed Bath & Beyond (NAS: BBBY) reported earnings on Dec. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ending Nov. 26 (Q3), Bed Bath & Beyond met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share increased significantly.

Gross margins were steady, operating margins expanded, and net margins improved.

Revenue details
Bed Bath & Beyond tallied revenue of $2.3 billion. The 23 analysts polled by S&P Capital IQ expected sales of $2.4 billion. Sales were 6.8% higher than the prior-year quarter's $2.2 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.95. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.89 per share. GAAP EPS of $0.95 for Q3 were 28% higher than the prior-year quarter's $0.74 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.9%, about the same as the prior-year quarter. Operating margin was 15.2%, 130 basis points better than the prior-year quarter. Net margin was 9.8%, 120 basis points better than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $2.7 billion. On the bottom line, the average EPS estimate is $1.30.

Next year's average estimate for revenue is $9.4 billion. The average EPS estimate is $3.83.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,012 members out of 1,214 rating the stock outperform, and 202 members rating it underperform. Among 453 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 409 give Bed Bath & Beyond a green thumbs-up, and 44 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bed Bath & Beyond is outperform, with an average price target of $66.13.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Bed Bath & Beyond. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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