Bed Bath & Beyond Misses Where it Counts

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Bed Bath & Beyond (NAS: BBBY) reported earnings on Sep. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Aug. 25 (Q2), Bed Bath & Beyond met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.


Margins contracted across the board.

Revenue details
Bed Bath & Beyond recorded revenue of $2.59 billion. The 14 analysts polled by S&P Capital IQ expected to see revenue of $2.60 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.31 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.98. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. GAAP EPS of $0.98 for Q2 were 5.4% higher than the prior-year quarter's $0.93 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.8%, 130 basis points worse than the prior-year quarter. Operating margin was 14.1%, 200 basis points worse than the prior-year quarter. Net margin was 8.7%, 120 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.74 billion. On the bottom line, the average EPS estimate is $1.02.

Next year's average estimate for revenue is $10.97 billion. The average EPS estimate is $4.64.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,077 members out of 1,295 rating the stock outperform, and 218 members rating it underperform. Among 423 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 376 give Bed Bath & Beyond a green thumbs-up, and 47 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 $75.55.

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The article Bed Bath & Beyond Misses Where it Counts originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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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