Will Bed Bath & Beyond’s 3Q17 Earnings Boost Its Stock?



Stock performance

Bed Bath & Beyond (BBBY), an American home furnishing company, is scheduled to announce its 3Q17 earnings after the market closes on December 20, 2017.

In 2Q17, Bed Bath & Beyond (BBBY) posted adjusted EPS (earnings per share) of $0.77 on revenues of ~$2.9 billion. Analysts had forecasted the company to post EPS of $0.95 on revenues of ~$3.0 billion. Also, the company failed to meet analysts’ SSSG (same-store sales growth) estimate of -0.7% with a posted decline of 2.7%. The lower-than-expected 2Q17 earnings had led the company’s stock price to fall to $19.07 on November 7, 2017. However, the expectation of a decline in corporate taxes due to the proposed tax reform has led BBBY stock price to increase. As of December 13, 2017, BBBY was trading at $22.46, which represents a decline of 16.9% since the announcement of its 2Q17 earnings on September 19, 2017.

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Year-to-date performance

2017 has been a tough year for BBBY, as the company has struggled to compete against e-commerce giant Amazon (AMZN). Since the beginning of 2017, the company’s stock price has fallen 44.7%. During the same period, peers Williams-Sonoma (WSM), Lowe’s (LOW), and Home Depot (HD) have returned 4.1%, 20.3%, and 35.8%, respectively.

The S&P 500 Index (SPX) and the Consumer Discretionary Select Sector SPDR Fund (XLY) have returned 18.5% and 20.2%, year-to-date, respectively.

Series overview

With BBBY’s 3Q17 earnings around the corner, we will look at analysts’ revenue and EPS expectations. We will also cover the company’s management guidance for 2018 and analysts’ expectations for the next four quarters. In the end, we’ll look at BBBY’s valuation multiple and analysts’ recommendations.

In the next article, we will look at analysts’ revenue expectations for 3Q17.


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