Bed Buyback & Beyond!

Earnings are out for Bed Bath & Beyond ($BBBY) and they were quite good. The company earned $1.17 per share last quarter. If you recall, the home furnishings company had given us a range of $1.08 to $1.16 per share, so they beat their own estimates.

The reason for the earnings beat is quite simple—they bought back a ton of shares. Last quarter, the company bought back $1 billion worth of stock, or 16.9 million shares. Net earnings fell 10%, but earnings-per-share increased by one penny.

For fiscal Q3, which ends in November, the company sees earnings ranging between $1.17 and $1.21 per share. They also gave us fiscal Q4 guidance of $1.78 to $1.83 per share (you can see how important the holiday shopping season is for them).

For the entire year, BBBY sees earnings coming in between $5.00 and $5.08 per share. Looking at the two separate quarterly guidance ranges adds up to $5.04 to $5.13 per share. The stock is currently up $5.01 to $67.70 per share in the after-hours market. That’s a gain of 8%.

Posted by on September 23rd, 2014 at 4:55 pm


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