Bed Bath & Beyond Inc. BBBY announced first-quarter 2017 earnings Thursday after-hours, and it’s safe to say it did not make the company any sell-side friends.
BTIG analyst Alan Rifkin is one of those with little positivity for the company, he reiterated a Neutral rating and no price target.
“Bed Bath materially missed out estimates,” said Rifkin. The company reported an EPS of $0.53 versus Rifkin’s $0.69 estimate, and same-store sales were negative 2 percent versus an estimated positive 0.5 percent.
Management cited a $0.05 downward tax impact, but Rifkin pointed out that this was accounted for both in their guidance and his estimates.
Bed Bath & Beyond’s Q1 comps were the worst since the Great Recession.
The analyst was also unsettled by the fact that management did not revise its fiscal year modeling assumptions.
The result of this is a significant reduction in Rifkin’s 2017 and 2018 EPS and comp estimates, which were already below consensus.
- 2017 EPS: from $4.30 to $3.95.
- 2017 EPS: from $4.35 to $4.00.
- 2017/2018 Comps: both from 0.5 percent growth to zero growth.
One positive though, if counterintuitive, is the potential for an acceleration in store closures so long as long-term returns are insufficient. The company could end up to 100 leases each year.
At last check, shares of Bed Bath & Beyond were down 11.63 percent at $29.82.
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