Factors Influencing Bed Bath & Beyond (BBBY) in Q4 Earnings
Bed Bath & Beyond Inc. BBBY is slated to release fourth-quarter fiscal 2021 results on Apr 13. 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 fourth-quarter earnings is pegged at 3 cents per share, suggesting a 92.5% decline from the year-ago quarter's reported figure. The consensus mark has moved down by a penny in the past seven days. The consensus mark for fiscal fourth-quarter sales stands at $2.09 billion, suggesting a 20.3% decline from the prior-year reported number.
The Zacks Consensus Estimate for the company's fiscal 2021 bottom line is pegged at a loss of 13 cents, indicating 87.1% growth from the year-ago quarter's reported figure. Meanwhile, the consensus mark for revenues stands at $7.9 billion, suggesting a decrease of 14.4% from the prior-year quarter's reported figure.
Also, the company has a trailing four-quarter negative earnings surprise of 27.3%, on average.
Bed Bath & Beyond Inc. Price and EPS Surprise
Bed Bath & Beyond Inc. price-eps-surprise | Bed Bath & Beyond Inc. Quote
Key Points to Note
Bed Bath & Beyond has been witnessing a lack of availability of products and supply-chain headwinds. Rising freight costs remain a concern. As a result, the company has been unable to meet demand. This, along with non-core banner divestitures and sluggishness in Bed Bath & Beyond banner sales, is expected to have weighed on the quarterly performance.
On the last reported quarter's earnings call, management anticipated fiscal fourth-quarter sales to be $2.1 billion and comps to decline in the high-single digits. The adjusted gross margin was envisioned to be 32.5-33%, reflecting the adverse impacts of global supply-chain challenges. Adjusted earnings were predicted to be between breakeven and 15 cents for the quarter under discussion. The company slashed its fiscal 2021 view. It envisioned net sales of $7.9 billion for fiscal 2021, down from the previously mentioned $8.1-$8.3 billion. Adjusted EBITDA was projected to be $290-$310 million, down from the previously mentioned $425-$465 million. Bed Bath & Beyond expected adjusted loss of 15 cents to breakeven earnings, down from the earlier stated earnings of 7-10 cents for fiscal 2021.
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 its planned rollout of Owned Brands as part of its three-year transformation plan. Gains from the efforts are expected to have provided some cushion to the company's performance in the to-be-reported quarter.
Its digital momentum bodes well. Management continues to bank on the robust digital channel and is making efforts to offer an enhanced customer experience. In doing so, it has entered the next phase of its supply-chain modernization via the partnership with Ryder and expanded its same-day delivery facility 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 is on track with enabling cross-banner browsing across Bed Bath & Beyond, buybuy BABY, and Harmon brands. It also launched its own digital marketplace in partnership with Kroger to strengthen its position in the home and baby categories.
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 -24.24%.
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:
Auto Nation AN has an Earnings ESP of +0.58% and a Zacks Rank of 1. The company is expected to register top and bottom-line growth when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for AN's quarterly revenues is pegged at $6.6billion, which suggests growth of 12.3% 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 Auton Nation's quarterly earnings has moved up 1.3% in the past 30 days to $5.39 per share, suggesting 93.2% growth from the year-ago reported number. AN has a trailing four-quarter earnings surprise of 39.3%, on average.
Tractor Supply Company TSCO currently has an Earnings ESP of +3.60% and a Zacks Rank #2. TSCO is likely to register top-line growth when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.9 billion, which suggests growth of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Tractor Supply's quarterly earnings has remained stable in the past 30 days at $1.39 per share, suggesting a decline of 10.3% from the year-ago quarter's reported number. TSCO has a trailing four-quarter earnings surprise of 22%, on average.
Fastenal FAST currently has an Earnings ESP of +2.94% and a Zacks Rank #3. FAST is anticipated to register top and bottom-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for the quarterly revenues is pegged at $1.68 billion, indicating an improvement of 18.4% from the prior-year quarter.
The Zacks Consensus Estimate for Fastenal's bottom line has remained stable in the past 30 days at44 cents per share. The consensus estimate suggests growth of 18.9% from the year-ago quarter's reported figure. FAST has a trailing four-quarter earnings surprise of 3.3%, on average.
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