Bed Bath & Beyond shares up on 2Q beat

Bed Bath & Beyond Inc.'s shares jumped to a record high Thursday after the home decor retailer's profit in its latest quarter edged past Wall Street expectations.

THE SPARK: The company reported after the market closed Wednesday that its second-quarter profit increased 11 percent $249.3 million.

On a per-share basis, it earned $1.16, a penny more than analysts polled by FactSet had forecast.

Revenue increased nearly 9 percent, to $2.82 billion, better than the $2.81 billion that analysts were anticipating.

THE BIG PICTURE: The company, based in Union, N.J., owns Bed Bath & Beyond, Cost Plus World Market, Christmas Tree Shops and buybuy Baby. It runs nearly 1,500 stores. Last year it bought distributor Linen Holdings and home goods chain World Market to beef up growth.

Bed Bath and Beyond's prediction for the year was mostly below analysts' estimate. It forecast earnings between $4.88 and $5.01 per share, while analysts estimated $5.01 per share

THE ANALYSIS: The company recently launched new websites for its namesake brand and its buybuy Baby division. Those could help Bed Bath & Beyond beat its guidance, said Citi's Kate McShane.

SHARE ACTION: Shares rose $3.09, or 4.2 percent, to $77.31 in midday trading. The stock peaked earlier Thursday at $78.88, an all-time high.