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Things to Note Ahead of Bed Bath & Beyond's (BBBY) Q1 Earnings

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Bed Bath & Beyond Inc. BBBY is slated to release first-quarter fiscal 2022 results on Jun 29. The leading specialty retailer is expected to deliver sales and earnings declines in the to-be-reported quarter.

The Zacks Consensus Estimate for the company's fiscal first-quarter earnings is pegged at a loss of $1.28 per share, suggesting a 2,660.00% decline from the year-ago quarter's reported figure. The consensus mark has been unchanged in the past 30 days. The consensus mark for fiscal first-quarter sales is pegged at $1.53 billion, suggesting a 21.7% decline from the prior-year reported number.

Also, the company has a trailing four-quarter negative earnings surprise of 4,700.00%, on average.

Key Points to Note

Bed Bath & Beyond has been gaining from continued strength in its digital channel, driven by enhanced omnichannel capabilities, including buy online and pick up in store, and same-day delivery services. In doing so, it has entered the next phase of its supply-chain modernization via a partnership with Ryder and has expanded its same-day delivery service through a partnership with Roadie. Earlier, it partnered with DoorDash to expand its same-day delivery services across the United States and Canada.

The company has been on track to enable cross-banner browsing across the Bed Bath & Beyond, buybuy BABY, and Harmon brands. It also launched its digital marketplace in partnership with Kroger to strengthen its position in the home and baby categories.

The company has been progressing well with the transformation plan, including store fleet optimization efforts and store remodeling programs. Bed Bath & Beyond has been on track with the rollout of Owned Brands as part of its three-year transformation plan. Per the plan, it has introduced eight Owned Brands, including Nestwell, Haven, Simply Essential, Wild Sage, Our Table, Squared Away, Studio 3B and H for Happy. Gains from these efforts are expected to have provided some cushion to the company's performance in the to-be-reported quarter.

However, BBBY has been reeling under the global supply-chain concerns, adverse impacts of the omicron variant, and geopolitical turbulence, which dampened consumer confidence. The lack of available inventory is expected to have been concerning.

Also, supply-chain headwinds, elevated freight and shipping costs, and higher-than-anticipated inflation are likely to have dented margins. On its last reported quarter’s earnings call, management expected adjusted EBITDA to be negative for the first quarter of fiscal 2022.

 

Bed Bath & Beyond Inc. Price and EPS Surprise

 

Bed Bath & Beyond Inc. Price and EPS Surprise
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 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:

Kroger KR has an Earnings ESP of +1.17% and a Zacks Rank of #2. The company is expected to register top and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for KR's quarterly revenues is pegged at $34 billion, which suggests growth of 7.3% from the prior-year quarter's reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kroger’s quarterly earnings has been unchanged in the past 30 days at 81 cents per share, suggesting 1.3% growth from the year-ago reported number. KR has a trailing four-quarter earnings surprise of 20.3%, on average.

Home Depot HD currently has an Earnings ESP of +1.15% and a Zacks Rank #3. HD is likely to register top-line growth when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $43.4 billion, which suggests growth of 5.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Home Depot’s quarterly earnings has been unchanged in the past 30 days at $4.94 per share, suggesting growth of 9.1% from the year-ago quarter's reported number. HD has a trailing four-quarter earnings surprise of 7.2%, on average.

Tapestry TPR currently has an Earnings ESP of +3.62% and a Zacks Rank #3. TPR is anticipated to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly revenues is pegged at $1.64 billion, indicating an improvement of 1.8% from the prior-year quarter.

The Zacks Consensus Estimate for Tapestry’s bottom line has been unchanged in the past 30 days at 78 cents per share. The consensus estimate suggests growth of 5.4% from the year-ago quarter's reported figure. TPR has a trailing four-quarter earnings surprise of 17.6%, on average.


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