Bed Bath & Beyond Beats on Both Top and Bottom Lines

Bed Bath & Beyond (NAS: BBBY) reported earnings on April 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 25 (Q4), Bed Bath & Beyond beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.


Gross margins dropped, operating margins expanded, net margins improved.

Revenue details
Bed Bath & Beyond reported revenue of $2.73 billion. The 22 analysts polled by S&P Capital IQ foresaw revenue of $2.66 billion on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $2.50 billion.

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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 $1.48. The 25 earnings estimates compiled by S&P Capital IQ predicted $1.33 per share. GAAP EPS of $1.48 for Q4 were 31% higher than the prior-year quarter's $1.13 per share.

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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 42.6%, 40 basis points worse than the prior-year quarter. Operating margin was 20.2%, 180 basis points better than the prior-year quarter. Net margin was 12.8%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.24 billion. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $10.22 billion. The average EPS estimate is $4.57.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,027 members out of 1,231 rating the stock outperform, and 205 members rating it underperform. Among 450 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 412 give Bed Bath & Beyond a green thumbs-up, and 38 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 $67.73.

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At the time this article was published 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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of 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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