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How Bed Bath & Beyond (BBBY) Looks Just Ahead of Q1 Earnings
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Bed Bath & Beyond Inc. is slated to release first-quarter fiscal 2021 results on Jun 30. The leading specialty retailer is likely to deliver revenue and earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 8 cents per share, suggesting a surge of 104.1% from the year-ago quarter’s reported loss of $1.96. The consensus mark has moved north by a penny in the past 30 days. Moreover, the consensus estimate for fiscal first-quarter sales is pegged at $1.87 billion, indicating a 43.3% increase from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered an earnings beat of 48.2%. Also, its bottom line beat estimates by 86.1%, on average, in the trailing four quarters.
Key Points to Note
Bed Bath & Beyond has been gaining from continued momentum in the digital platform, driven by omnichannel services like Buy-Online-Pick-Up-In-Store and Curbside Pickup. Further, higher downloads of the namesake brand’s mobile apps and buybuy BABY mobile apps have been acting as major growth drivers. Also, strategic partnerships with Shipt and Instacart for same-day delivery services bode well. Gains from these actions are also likely to get reflected in the company’s top line for the to-be-reported quarter. For first-quarter fiscal 2021, management expected net sales to grow more than 40% year over year, in its last earnings release.
Moreover, the company remains on track with its store optimization plans, which are expected to generate savings of nearly $100 million on an annual basis. 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 as well as home decor. In the last earnings call, management noted that three private-label brands (Owned Brands) — Nestwell, Haven and Simply Essential — have been launched in the first quarter of fiscal 2021. Sales gains from these brands are likely to be accretive to its results in the to-be-reported quarter.
Apart from these, stringent cost-cutting actions should have contributed to the company’s fiscal first-quarter bottom line. In its last quarter’s earnings call, the company predicted gross margin growth of 34% on a sequential basis, in the fiscal first quarter.
However, continued uncertainty related to COVID-19 remains a concern for Bed Bath & Beyond. Further, it has been witnessing higher freight costs due to increased online shipments, which are likely to persist in fiscal 2021.
Our proven model predicts 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. 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 +52.38%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
DICK’S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +3.55% and a Zacks Rank #1.
Foot Locker (FL - Free Report) presently has an Earnings ESP of +1.34% and a Zacks Rank #1.
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Image: Bigstock
How Bed Bath & Beyond (BBBY) Looks Just Ahead of Q1 Earnings
Bed Bath & Beyond Inc. is slated to release first-quarter fiscal 2021 results on Jun 30. The leading specialty retailer is likely to deliver revenue and earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 8 cents per share, suggesting a surge of 104.1% from the year-ago quarter’s reported loss of $1.96. The consensus mark has moved north by a penny in the past 30 days. Moreover, the consensus estimate for fiscal first-quarter sales is pegged at $1.87 billion, indicating a 43.3% increase from the prior-year quarter’s reported number.
In the last reported quarter, the company delivered an earnings beat of 48.2%. Also, its bottom line beat estimates by 86.1%, on average, in the trailing four quarters.
Key Points to Note
Bed Bath & Beyond has been gaining from continued momentum in the digital platform, driven by omnichannel services like Buy-Online-Pick-Up-In-Store and Curbside Pickup. Further, higher downloads of the namesake brand’s mobile apps and buybuy BABY mobile apps have been acting as major growth drivers. Also, strategic partnerships with Shipt and Instacart for same-day delivery services bode well. Gains from these actions are also likely to get reflected in the company’s top line for the to-be-reported quarter. For first-quarter fiscal 2021, management expected net sales to grow more than 40% year over year, in its last earnings release.
Moreover, the company remains on track with its store optimization plans, which are expected to generate savings of nearly $100 million on an annual basis. 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 as well as home decor. In the last earnings call, management noted that three private-label brands (Owned Brands) — Nestwell, Haven and Simply Essential — have been launched in the first quarter of fiscal 2021. Sales gains from these brands are likely to be accretive to its results in the to-be-reported quarter.
Apart from these, stringent cost-cutting actions should have contributed to the company’s fiscal first-quarter bottom line. In its last quarter’s earnings call, the company predicted gross margin growth of 34% on a sequential basis, in the fiscal first quarter.
However, continued uncertainty related to COVID-19 remains a concern for Bed Bath & Beyond. Further, it has been witnessing higher freight costs due to increased online shipments, which are likely to persist in fiscal 2021.
Bed Bath & Beyond Inc. Price and EPS Surprise
Bed Bath & Beyond Inc. price-eps-surprise | Bed Bath & Beyond Inc. Quote
Zacks Model
Our proven model predicts 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. 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 +52.38%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Boot Barn Holdings (BOOT - Free Report) has an Earnings ESP of +2.42% and a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +3.55% and a Zacks Rank #1.
Foot Locker (FL - Free Report) presently has an Earnings ESP of +1.34% and a Zacks Rank #1.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>