Why Buyers Are Rushing Into Bath & Body Works Stock Today

Why Buyers Are Rushing Into Bath & Body Works Stock Today

Bath & Body Works Inc BBWI shares are soaring Thursday after the company reported better-than-expected financial results and raised its full-year earnings outlook.

Bath & Body Works said third-quarter revenue decreased 5% year-over-year to $1.6 billion. The number beat average analyst estimates of $1.55 billion, according to Benzinga Pro. The retailer reported third-quarter earnings of 40 cents per share, doubling estimates of 20 cents per share.

"We are pleased to have delivered better-than-anticipated bottom-line performance as the team remained focused on innovation and newness, continued to leverage our vertically integrated supply chain to chase into key winners, and took aggressive action to control costs and improve overall efficiencies," said Sarah Nash, executive chair and interim CEO of Bath & Body Works.

Bath & Body Works expects fourth-quarter earnings to be between $1.45 and $1.65 per share versus average estimates of $1.55 per share. The company raised its full-year earnings guidance from a range of $2.70 to $3 per share to a range of $3 to $3.20 per share.

Following the company's quarterly results, Baird analyst Mark Altschwager maintained Bath & Body Works with an Outperform rating and raised the price target from $48 to $50.

Wells Fargo analyst Ike Boruchow also maintained Bath & Body Works with an Overweight rating and raised the price target from $50 to $55.

See Also: Dow Tumbles Over 200 Points Following Jobless Claims Data

BBWI Price Action: Bath & Body Works has a 52-week high of $82 and a 52-week low of $25.75.

The stock was up 17.3% at $26.80 at time of publication. 

Photo: courtesy of Bath & Body Works.

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