Will Bed Bath & Beyond (BBBY) Impress Wall Street With Q1 Earnings?

What's Happening With BBBY View more about BBBY >

Home goods retailer Bed Bath & Beyond (BBBY) reports fiscal first quarter numbers July 10. The company is expected to report after the market close with the consensus calling for earnings of $0.08 per share on revenue of $2.58 billion. During the same period last year the company earned $0.32 on sales of $2.8 billion.

Technical Analysis

BBBY stock was recently trading at $11.14 down $10.31 from its 12-month high and $0.68 above its 12-month low. InvestorsObserver’s Stock Score Report gives BBBY a 11 long-term technical score and a 12 short-term technical score. The stock has recent support above $10 and recent resistance below $12. Of the 18 analysts who cover the stock 2 rate it Strong Buy, 0 rate it Buy, 13 rate it Hold, 0 rate it Sell, and 3 rate it Strong Sell, BBBY gets a score of 21 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Bed Bath & Beyond continues to struggle to keep pace with the competition in today’s retail environment. The company’s inability to show material improvements in its online business has hurt the stock and earnings have fallen 20.7% annually over the last five years. Analysts expect earnings to fall at a slower annual rate of 4.2% over the next five years, but until the company is able to start delivering profit growth the stock will suffer. Wall Street has little faith in the company’s turnaround efforts and has yet to buy back into the stock despite shares trading at just 5 times future earnings. BBBY is perfect example of a company that was unable to adapt as e-commerce grew in importance and now the company is struggling to gain traction in the e-commerce space. Last quarter the company delivered mixed results with better than expected earnings and a revenue miss, and Wall Street has pushed shares significantly lower in the three months since the last report, with shares down 42% since the most recent report. With so much negativity already priced into the stock, there is a chance for a strong rally if the company is able to deliver blockbuster numbers on both the top and bottom line, but the numbers have to beat on both lines. Given the low valuation the downside is likely limited barring a huge miss, but it will take several positive quarterly reports before Wall Street will really start to buy into BBBY’s story. Analysts have an average price target of $17.19 on the stock.

BBBY
About Bed Bath & Beyond Inc.

Bed Bath & Beyond is a home furnishings retailer, operating around 1,530 stores in all 50 states, Puerto Rico, Canada, and Mexico. Stores carry an assortment of branded bed and bath accessories, kitchen textiles, and cooking supplies. In addition to 994 Bed Bath & Beyond stores, the firm operates 277 Cost Plus stores, 124 Buybuy Baby stores, 81 Christmas Tree Shops and And That Stores (gifts/housewares), 55 Harmon Face Values stores (health/beauty care), linens/textile wholesaler Linen Holdings, and online retailers OneKingsLane, Personalizationmall, and Ofakind.

  • Last Price:
    $10.11
  • Previous Close:
    $10.80
  • Change:
    $-0.69 (-6.39%)
  • Open:
    $10.79
  • Volume:
    9,000,167
  • Average Volume (100 Day):
    6,242,340
  • Market Capitalization:
    $1.3 B
  • Day's Range:
    $10.05 - $10.79
  • Dividend Yield:
    6.30%
  • 52-week Range:
    $20 - $10.43
  • P-E:
    0.00
  • EPS:
    $-4.25
  • Earnings Date:
    9/25/19
  • Ex Dividend Date:
    9/12/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Specialty Retail
  • Analyst Average Recommendation:
    Hold

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