Yahoo Finance Bed Bath & Beyond cuts outlook, shares plunge
Bed Bath & Beyond reports disappointing 3Q, lowers forecast and shares plunge after hours
NEWS: Bed Bath & Beyond Inc. shares fell in extended trading Wednesday after the retailer reported disappointing fiscal third-quarter results and cut its outlook.
DETAILS: The company, which owns retailers such as Cost Plus World Market and Bed Bath & Beyond, reported that its profit in the most recent quarter increased nearly 2 percent on stronger sales. But the quarter's results fell short of market forecasts. It also lowered its forecast for its fourth quarter and full year.
Sales in stores open at least a year — a key metric of a retailer's health — rose 1.3 percent during the third quarter, compared with an increase of about 1.7 percent in last year's third quarter.
NUMBERS: Bed Bath & Beyond said that it earned $237.2 million, or $1.12 per share, for its quarter ended Nov 30. That's up from the $232.8 million, or $1.03 per share, earned in the same quarter of the prior year. Its revenue increased 6 percent to $2.86 billion from $2.7 billion.
Analysts polled by FactSet were anticipating a profit of $1.15 per share on revenue of $2.88 billion.
FUTURE: The Union, N.J.-based company now expects to earn $1.60 to $1.67 per share for its fourth quarter, down from its prior forecast of $1.70 to $1.77. Analysts polled by FactSet were anticipating earnings of $1.79 per share.
Bed Bath and Beyond said that it expects to earn between $4.79 and $4.86 per share for the full year, down from its prior forecast of $4.88 to $5.01. Analysts had predicted earnings of $5.02 per share.
STOCK: Shares plunged more than 8 percent to $73 in after-hours trading following the report. Its stock added 47 cents to close regular trading Wednesday at $79.68.
