Why Bed Bath & Beyond Inc. Shares Sank
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of specialty retailer Bed Bath & Beyond plunged 13% today after its quarterly results and outlook disappointed Wall Street.
So what: The stock has been sluggish in recent months on concerns over slowing growth, and today's third quarter results -- profit edged up 2% on a revenue increase of just 6% -- coupled with downbeat guidance only reinforce those worries. In fact, same-store sales rose just 1.3% versus 1.7% in the year-ago period, suggesting the company's competitive position is weakening a bit.
Now what: Management now sees full-year EPS of $4.79-$4.86, down from its view of $4.88-$5.01, and below the Wall Street consensus of $5.02. "We believe that throughout the United States and Canada, there is an opportunity to operate in excess of 1,300 Bed Bath & Beyond stores, as well as grow our World Market, Christmas Tree Shops or andThat!, and buybuy BABY concepts from coast to coast," Co-Founder/Co-Chairman Leonard Feinstein reassured analysts in a conference call. "We remain committed to and are excited about the continued growth of all our merchandise categories."
More important, with the stock now off about 15% from its 52-week highs and trading at a cheapish forward P/E of 12, now might be an opportune time to buy into that bullishness.
More great ways to go for growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his six carefully chosen picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.
The article Why Bed Bath & Beyond Inc. Shares Sank originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 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.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.