Bed Bath & Beyond (BBBY) Slips After Q3 Results, Muted Q4 Guidance

December 19, 2012 5:02 PM EST Send to a Friend
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Price: $66.35 +0.74%

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Net sales: 2.94B

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Bed Bath & Beyond, Inc. (NASDAQ: BBBY) stock declined in after-hours trading on Wednesday after the company released its third quarter earnings report. Investors looked past solid Q3 EPS toward Q4 guidance, which fell short of expectation, with midpoint EPS guidance over 10 cents lower than estimates.

Bed Bath & Beyond reported Q3 revenue of $2.702 billion, an increase of 15.3 percent compared to 2011. Analysts were calling for sales that were slightly higher at $2.73 billion.

On the earnings front, BBBY reported EPS of $1.03, topping estimates by a penny and 8.4 percent higher than last year.

Comparable store sales in the fiscal third quarter of 2012 increased by approximately 1.7 percent, compared with an increase of approximately 4.1 percent in last year's fiscal third quarter. The Company estimates that the impact of Hurricane Sandy reduced its comparable store sales percentage during the fiscal third quarter by approximately 0.9 percent.

BBBY also announced a healthy $2.5 billion stock repurchase plan. The buyback plan is meant to replace the company’s current repurchase program, which is wrapping up.

In addition to the share repurchase programs, Bed Bath & Beyond CEO Steven Temares said, "our strong operations should allow us to continue to invest in our infrastructure and maintain our flexibility to take advantage of opportunities as they may arise."

For the forth quarter, Bed Bath & Beyond sees EPS of $1.60-1.67, versus the consensus of $1.75.

Bed Bath & Beyond sees FY12 EPS of approximately $4.48 to $4.54, versus the consensus of $4.62.

Shares of Bed Bath & Beyond last traded at $58.05, down 3.7 percent from the close.


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