Bed Bath & Beyond Inc. (NASDAQ:BBBY) last night issued a warning for their forthcoming fiscal third quarter earnings. The warning comes as the company’s stock is already trading down considerably over the last four trading days. Bed Bath & Beyond Inc. now believes that for the quarter ending November 28, which includes Thanksgiving and Black Friday, they will be reporting net sales around $3 billion, which is an increase of just 0.3% over the same time period last year. This is a far cry from the company’s previous estimates of a 1.8 to 4% gain over last year. They also have revised their estimates for their third quarter EPS from $1.14 – $1.21 per share to just $1.07 – $1.10 per share. Analysts on average were expecting around $1.17 per share.
“Our performance in the third quarter reflects the recent trends we have been experiencing,” stated Steven H. Temares, Chief Executive Officer and Member of the Board of Directors of Bed Bath & Beyond Inc. “On the one hand we experienced softer in-store transaction counts, and on the other hand sales from our customer-facing digital channels demonstrated strong growth, in excess of 25%. These mixed results were also impacted by the overall softness reported in the macro-retail environment during the quarter. As the retail environment continues to evolve, we remain focused on positioning our Company for long-term success.”
Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) are trading down $2.82 or 5.42% in the pre-market this morning. The stock closed at $51.32 during the last trading session. It is down 28.16% since May 20, 2015 and is downtrending. It has underperformed the S&P500 by 25.90%.
From a total of 12 analysts covering Bed Bath & Beyond (NASDAQ:BBBY) stock, 2 rate it a “Buy”, 1 a “Sell”, and 9 a “Hold”. This means that 17% of the ratings are positive. The highest target price is $77 while the lowest target price is $49. The mean of all analyst targets is $64.64 which is 25.95% above today’s ($51.32) stock price. Bed Bath & Beyond was the topic of 13 analyst reports since September 21, 2015 according to the firm StockzIntelligence Inc. Cantor Fitzgerald downgraded shares on November 20 to a “Hold” rating. TelseyAdvisory Group upgraded shares to a”Market Perform” rating and a $65 target share price in their report from a September 25. Citigroup maintained BBBY stock in a recent report from September 28 with a “Neutral” rating. Telsey Advisory Group upgraded the rating on September 25. Telsey Advisory Group has a “Market Perform” rating and a $65 price target on shares. Finally, Credit Agricole maintained the stock with a “Neutral” rating in a report they issued on a September 25.
The institutional sentiment increased to 0.88 in Q2 2015. It’s up 0.20, from 0.68 in 2015Q2. The ratio improved, as 68 funds sold all their Bed Bath & Beyond Inc. shares they owned while 218 reduced their positions. 47 funds bought stakes while 204 increased their total positions. Institutions now own 173.80 million shares which is 7.95% more than the previous share count of 161.00 million in 2015Q2.
Mcdonald Capital Investors Inc Ca holds 4% of its total portfolio in Bed Bath & Beyond Inc., equating to 653,133 shares. Leonard Green Partners Lp owns 990,000 shares representing 3.81% of their total US portfolio. Moreover, Breithorn Capital Management has 3.63% of their total portfolio invested in the company, equating to 89,445 shares. The California-based Wilsey Asset Management Inc has a total of 3.63% of their portfolio invested in the stock. Sather Financial Group Inc, a Texas-based fund reported 143,731 shares owned.
Bed Bath & Beyond Inc. and subsidiaries is a retailer selling an assortment of domestics merchandise and home furnishings, which operates under the names Bed Bath & Beyond, Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, Harmon or Harmon Face Values, buybuy BABY and World Market, Cost Plus World Market or Cost Plus. The company has a market cap of $8.56 billion. Customers can purchase products from the Company either in-store, online or through a mobile device. It has 9.93 P/E ratio. In addition, the Company operates Of a Kind, an e-commerce Website that features specially commissioned, limited edition items from emerging fashion and home designers.