Bed Bath & Beyond (BBBY) Misses Q3 EPS by 25c, Q4 Guidances Falls Short of Consensus

Bed Bath & Beyond (NASDAQ: BBBY) reported Q3 EPS of ($0.25), $0.25 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $1.88 billion versus the consensus estimate of $1.96 billion.

GUIDANCE:

Bed Bath & Beyond sees Q4 2021 EPS of $0.00-$0.15, versus the consensus of $0.72. Bed Bath & Beyond sees Q4 2021 revenue of $2.1 billion, versus the consensus of $2.27 billion.

• As a reminder, Net Sales throughout fiscal 2021 include the Company's Core1 businesses and reflects planned reductions related to the Company's store fleet optimization activity.
• Fiscal 2021 Fourth Quarter Outlook
• The Company expects fiscal 2021 fourth quarter Net Sales of approximately $2.1 billion, which only reflects sales from the Company's Core1 businesses. Net Sales also includes planned sales reductions from divestitures and the Company's store fleet optimization program. On a Comparable Sales basis, the Company expects a high-single digit decline compared to the prior year period.
• The Company expects to achieve Adjusted2 Gross Margin of 32.5% to 33.0%. This guidance reflects the continued impact of anticipated greater global supply chain challenges.
• The Company expects Adjusted2 EBITDA between $80 million to $100 million and Adjusted2 EPS in the range of $0.00 to $0.15 per diluted share for the fiscal 2021 fourth quarter.
• Fiscal Year 2021 Outlook
• Based on its year-to-date performance, as well as current expectations for the fiscal fourth quarter, the Company is revising its fiscal year 2021 guidance outlook.
• The Company now expects fiscal year 2021 Net Sales of approximately $7.9 billion. On a Comparable Sales basis, the Company expects high-single digit growth for the full fiscal year.
• Adjusted2 Gross Margin is now anticipated to be in a range of 34.0% to 34.5% and Adjusted2 SG&A is expected to be approximately 34%.
• The Company now expects Adjusted2 EBITDA to be in the range of $290 million to $310 million and Adjusted2 EPS range of ($0.15) to $0.00 per diluted share.

For earnings history and earnings-related data on Bed Bath & Beyond (BBBY) click here.

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