Bed Bath & Beyond Stock Down On Soft Outlook

(RTTNews) - Home goods retailer Bed Bath & Beyond Inc. (BBBY), Wednesday reported a decline in profit for the fourth quarter, despite growth in revenues as higher costs impacted bottom line. However, on a per share basis, earnings improved due mainly to lower share count for the quarter. Earnings for the quarter were in line with Wall Street estimates, but revenues fell short of expectations.

Union, New Jersey-based Bed Bath & Beyond's fourth-quarter profit dropped to $321.1 million or $1.80 per share from $333.3 million or $1.60 per share last year. On average, 24 analysts polled by Thomson Reuters estimated earnings of $1.80 per share for the quarter. Analysts' estimates typically exclude one-time items.

Bed Bath & Beyond's sales for the fourth quarter grew 4.2 percent to $3.34 billion from $3.20 billion a year earlier. Analysts had a consensus revenue estimate of $3.37 billion for the fourth quarter.

Same-store sales for the fourth quarter increased by about 3.7 percent. Cost of sales rose to $2.01 billion from $1.91 billion last year, while selling, general and administrative costs rose to $793.7 million from $770.4 million last year.

Looking forward, the company expects earnings of $0.90 to $0.95 per share for the first quarter and between relatively flat and a mid-single digit percentage increase for the full year 2015. Analysts currently expect earnings of $1.01 per share for the first quarter.

Bed Bath & Beyond said it is modeling a 2 to 3 percent increase for comparable sales for both first quarter and full year 2015.

Bed Bath & Beyond operates retail stores that sell a range of domestic merchandise and home furnishings under its eponymous brand as well as names like World Market, Christmas Tree Shops, andThat!, Harmon, among others. As of February 28, 2015, the company had a total of 1,513 stores.

BBBY closed Wednesday's trading at $77.68, up $0.98 or 1.28%, on the Nasdaq. The stock, however, gained $3.05 or 3.93%, in the after-hours trade.