Here's What Wall Street Has to Say About Bed Bath & Beyond (BBBY) Stock After Earnings

September 30, 2022 9:42 AM EDT
Get Alerts BBBY Hot Sheet
Price: $3.24 -2.7%

Rating Summary:
    4 Buy, 18 Hold, 13 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 5 | New: 0
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Bed Bath & Beyond (NASDAQ: BBBY) stock closed over 4% yesterday to hit 8-week lows after the retailer reported earnings.

BBBY reported a loss per share of $3.22, much worse than the consensus that was calling for a loss per share of $1.80. Revenue for the quarter also came in slightly lower.

“The Company anticipates breakeven operating cash flow by the end of fiscal 2022,” BBBY said in a statement.

Wall Street analysts have reflected on the BBBY stock today with most of them reiterating their bearish stance.

Here are comments from the top Wall Street analysts covering Bed Bath & Beyond stock.

Jefferies analyst Jonathan Matuszewski (Hold, PT $7 from $9): “BBBY is not the only victim of a softer macro backdrop, though they are feeling the brunt of the impact given a turnaround that remains early innings. We believe the final months of F'22 are critical to establish stability in fundamentals, ensure liquidity, and reassure vendors ahead of uncertain consumer spend in F'23. With balance sheet optimization efforts and store closures, we see limited downside in shares.”

KeyBanc analyst Bradley Thomas (Underweight, $2 PT): “BBBY fundamentals remain challenged, with 2Q comps and EPS solidly negative, which aligned with the Company’s August 31 strategic update and our proprietary KFL Data. The Company continues to execute inventory mix changes by exiting nearly a third of the legacy-owned brands while increasing popular national brands to drive traffic and growth. We remain cautious about fundamentals at BBBY.”

Morgan Stanley analyst Simeon Gutman (Underweight, $2 PT): “We are skeptical around BBBY's ability to gain traction with consumers despite new strategic initiatives. EBITDA preservation/cash flow more in focus.”

Telsey Advisory Group analyst Cristina Fernandez (Underperform, $3): “We remain concerned by the magnitude of the sales declines and believe it will be challenging to win consumers back in a softer economic climate when the consumer is spending less on home, and in a more competitive and promotional retail landscape. We also believe it will take several quarters to transition the merchandise mix, with little progress likely in 2H22.”

Wells Fargo analyst Zachary Fadem: “New initiatives (Welcome Rewards, new merch and simply saying 'hello' to customers) are seemingly resonating, but restructuring efforts are clearly warranted; and with share losses widening, likely ~$900M of FY22 cash burn and an increasingly challenging/ promotional Home Goods landscape.”

As of 09:40 EST, Bed Bath & Beyond stock price is trading at $6.01, down 2.92% on the day.

By Senad Karaahmetovic

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