Bed Bath & Beyond Stock Plunges in After-Hours Trading



First-quarter performance

Bed Bath & Beyond (BBBY) posted its first-quarter earnings after the market closed on June 27. The company posted adjusted EPS of $0.33 on revenue of $2.75 billion. Year-over-year, the company’s EPS fell 43.1%, while its revenue rose 0.4%.

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Analysts’ estimates

Analysts were expecting the company to post EPS of $0.32 on revenue of $2.75 billion. Although BBBY met analysts’ revenue and EPS expectations, the company failed to meet analysts’ SSSG (same-store sales growth) estimates of 0.1%. The company’s SSSG fell 0.6% during the quarter. The fall appears to have made investors skeptical about the company’s future earnings, leading to a fall in its stock price. BBBY was trading 5.2% lower in after-hours trading on June 27.

Year-to-date performance

In 2017, BBBY’s stock price fell 45.9%. Continuing on its downward trajectory, the stock has fallen 8.2% since the beginning of 2018. Comparably, BBBY’s peers Williams-Sonoma (WSM) and RH (RH) have returned 18.6% and 67.5% year-to-date, respectively. Also, during the same period, the S&P 500 Index (SPX) and the SPDR S&P Homebuilders ETF (XHB) have returned 1.0% and -11.4%, respectively.

Series overview

In this series, we’ll analyze BBBY’s first-quarter performance by comparing it with analysts’ estimates. We will also cover its management’s guidance for 2018.

Let’s start by looking at BBBY’s first-quarter revenue.


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