We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bed Bath & Beyond (BBBY) to Post Q2 Earnings: What's in Store?
Read MoreHide Full Article
Bed Bath & Beyond Inc. is slated to release second-quarter fiscal 2021 results on Sep 30. The leading specialty retailer is likely to deliver earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is pegged at 53 cents per share, suggesting 6% growth from the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
The consensus estimate for fiscal second-quarter sales is pegged at $2.06 billion, indicating a 23.3% decline from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered a negative earnings surprise of 37.5%. However, the bottom line beat estimates by 86.2%, on average, in the trailing four quarters.
Bed Bath & Beyond has been gaining from the continued momentum in the digital platform, driven by omnichannel services like Buy-Online-Pick-Up-In-Store and Curbside Pickup. Management in collaboration with DoorDash is expanding its same-day delivery services across the United States and Canada. In the last reported quarter, stores fulfilled 31% of digital sales, of which 14% were BOPIS orders. Partnerships with Shipt and Instacart for same-day delivery services also bode well. Gains from these actions are expected to get reflected in the company’s top line for the to-be-reported quarter.
The company remains on track with its store-optimization plans, which are expected to be accretive to its performance in the to-be-reported quarter. As part of its three-year transformation plan, the company is on an assortment expansion spree via the new Owned Brands, which will cater to consumer needs across segments such as bed, bath, kitchen and dining, storage and organization, and home decor.
In the first quarter of fiscal 2021, Bed Bath & Beyond launched three private-label brands (Owned Brands), including Nestwell, Haven and Simply Essential. In the fiscal second quarter, it launched three more private labels, including Wild Sage, Our Table and Squared Away. The addition of the assortments is likely to have boosted the company’s sales in the fiscal second quarter.
In the last reported quarter’s earnings call, management anticipated sales of $2.04-$2.08 billion for second-quarter fiscal 2021, inclusive of core sales and planned sales reduction of 9-10%, stemming from its store fleet-optimization program. Year-over-year comp growth is predicted in low-single digits. Adjusted earnings are expected to be 48-55 cents for the quarter under review.
However, the company has been witnessing rising freight costs, stemming from increased online shipments and the ongoing industry-wide supply-chain constraints. Management predicted higher freight costs to continue throughout fiscal 2021. This might have affected the company’s profitability in the to-be-reported quarter. Also, drab in-store sales are likely to have been concerning.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Bed Bath & Beyond this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bed Bath & Beyond currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Image: Bigstock
Bed Bath & Beyond (BBBY) to Post Q2 Earnings: What's in Store?
Bed Bath & Beyond Inc. is slated to release second-quarter fiscal 2021 results on Sep 30. The leading specialty retailer is likely to deliver earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is pegged at 53 cents per share, suggesting 6% growth from the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
The consensus estimate for fiscal second-quarter sales is pegged at $2.06 billion, indicating a 23.3% decline from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered a negative earnings surprise of 37.5%. However, the bottom line beat estimates by 86.2%, on average, in the trailing four quarters.
Bed Bath & Beyond Inc. Price and EPS Surprise
Bed Bath & Beyond Inc. price-eps-surprise | Bed Bath & Beyond Inc. Quote
Key Points to Note
Bed Bath & Beyond has been gaining from the continued momentum in the digital platform, driven by omnichannel services like Buy-Online-Pick-Up-In-Store and Curbside Pickup. Management in collaboration with DoorDash is expanding its same-day delivery services across the United States and Canada. In the last reported quarter, stores fulfilled 31% of digital sales, of which 14% were BOPIS orders. Partnerships with Shipt and Instacart for same-day delivery services also bode well. Gains from these actions are expected to get reflected in the company’s top line for the to-be-reported quarter.
The company remains on track with its store-optimization plans, which are expected to be accretive to its performance in the to-be-reported quarter. As part of its three-year transformation plan, the company is on an assortment expansion spree via the new Owned Brands, which will cater to consumer needs across segments such as bed, bath, kitchen and dining, storage and organization, and home decor.
In the first quarter of fiscal 2021, Bed Bath & Beyond launched three private-label brands (Owned Brands), including Nestwell, Haven and Simply Essential. In the fiscal second quarter, it launched three more private labels, including Wild Sage, Our Table and Squared Away. The addition of the assortments is likely to have boosted the company’s sales in the fiscal second quarter.
In the last reported quarter’s earnings call, management anticipated sales of $2.04-$2.08 billion for second-quarter fiscal 2021, inclusive of core sales and planned sales reduction of 9-10%, stemming from its store fleet-optimization program. Year-over-year comp growth is predicted in low-single digits. Adjusted earnings are expected to be 48-55 cents for the quarter under review.
However, the company has been witnessing rising freight costs, stemming from increased online shipments and the ongoing industry-wide supply-chain constraints. Management predicted higher freight costs to continue throughout fiscal 2021. This might have affected the company’s profitability in the to-be-reported quarter. Also, drab in-store sales are likely to have been concerning.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Bed Bath & Beyond this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bed Bath & Beyond currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Macy’s, Inc. (M - Free Report) has an Earnings ESP of +3.85% and it sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tractor Supply Company (TSCO - Free Report) currently has an Earnings ESP of +1.97% and a Zacks Rank #3.
CarMax, Inc. (KMX - Free Report) presently has an Earnings ESP of +1.41% and a Zacks Rank #3.