Market Overview

Will Earnings From Bed Bath & Beyond And Rite Aid Disappoint?

Will Earnings From Bed Bath & Beyond And Rite Aid Disappoint?
  • Upcoming earnings highlights include the latest results from two prominent retailers.
  • Mixed results are forecast for one but weak growth from the other.
  • Earnings from both companies have fallen short of expectations in recent periods.

While all eyes will be on this week's Federal Open Market Committee meeting, a handful of companies also will be reporting their most recent earnings. Among them, domestics retailer Bed Bath & Beyond Inc. (NASDAQ: BBBY) and drugstore chain Rite Aid Corporation (NYSE: RAD). Wall Street expectations appear to be mild, but mixed, for these results.

Bed Bath & Beyond

Wall Street's consensus forecast calls for Bed Bath & Beyond, which faces the same headwinds as many competing retailers, to post $1.16 in earnings per share, which would be down by a nickel year-over-year. The consensus of 22 Estimize respondents calls for $0.02 more per share for the fiscal second quarter. Note that both Wall Street and Estimize overestimated EPS in the prior quarter.

Estimize also overestimated the revenue in the previous quarter, and this time respondents are looking for $3.06 billion, which would be around 2 percent higher than a year ago. The Wall Street estimate is in the same ballpark, at $3.05 billion, and so far the analysts see a marginally larger gain in the current quarter.

See also: Kroger Is Still Ahead Of The Game, Despite Its 25% Tumble

Rite Aid

When Rite Aid shares its fiscal second-quarter results, the Wall Street forecast is that its earnings will have ticked up by a penny from a year ago to $0.03 per share, on $8.17 billion in revenue, which would be a more than 6 percent increase. Note that EPS have only topped estimates in one of the past four quarters. And also keep in mind that Rite Aid is in the process of merging with larger Walgreens.

The forecast from 7 Estimize respondents sees EPS from the third largest U.S. drugstore chain (for now) coming in at $0.02, or the same as a year ago. They are a bit more pessimistic on revenue, with a consensus forecast of $8.06 billion for the three months that ended in August. Note that Estimize overestimated revenue in the previous period.

Bed Bath & Beyond is scheduled to report its results after the closing bell on Wednesday, while Rite Aid is expected to post its numbers first thing on Thursday.


A few other retailers are on deck to share their results this week. Wall Street is looking for at least some earnings growth from Ascena Retail, AutoZone, CarMax and Foot Locker when they share their results.

In addition, the consensus forecasts call for per-share earnings at Adobe Systems, FedEx and KB Home to be higher than a year ago in their report s. EPS from General Mills and Jabil Circuit will be smaller year over year, if analysts are correct.

The following week, keep an eye out for quarterly reports from the likes of BlackBerry, ConAgra Foods, Costco, Nike, PepsiCo and Pier 1 Imports. Third-quarter earnings reports don't really begin until October.

At the time of this writing, the author had no position in the mentioned equities.

Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.

Image: Mike Mozart, Flickr

Posted-In: Bed Bath & Beyond Rite AidEarnings News Previews Trading Ideas Best of Benzinga


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