Notable Stock to Watch: Bed Bath & Beyond Inc. (NASDAQ: BBBY)

Bed Bath & Beyond Inc. (NASDAQ: BBBY) stock identified change of 10.13% away from 52-week low price and recently located move of -45.92% off 52-week high price. It has market worth of $1502.09M and dividend yield of 5.90%. BBBY stock has been recorded -14.11% away from 50 day moving average and -19.76% away from 200 day moving average. Moving closer, we can see that shares have been trading -1.11% off 20-day moving average.

Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced financial results for the first quarter of fiscal 2019 ended June 1, 2019.

Mary A. Winston, Interim CEO, stated, “Bed Bath & Beyond is an iconic brand with tremendous opportunity and we recognize that there needs to be a fundamental change in our approach to executing the Company’s business transformation.  We have set four key near-term priorities that include stabilizing and driving top-line growth; resetting the cost structure; reviewing and optimizing the Company’s asset base, including our portfolio of retail banners; and refining our organization structure.  The Board and management team are aligned on these priorities, and we are committed to completing a deep review of the business to prioritize and drive forward the most meaningful initiatives to improve performance.  As we execute against these near-term priorities, our focus will remain on delighting our customers and delivering long-term value for our shareholders.”

Fiscal 2019 First Quarter Results

For the fiscal 2019 first quarter, the Company reported a net loss of ($2.91) per diluted share (($371.1) million), which included an unfavorable impact of approximately $3.03 per diluted share related to a non-cash impairment of goodwill and other intangible assets, as well as severance and shareholder activity costs incurred during the quarter, compared with net earnings of $.32 per diluted share ($43.6 million) for the fiscal 2018 first quarter, which included an unfavorable impact of approximately $.06 from severance costs.  Excluding the goodwill and other impairments, severance and shareholder activity costs, the Company reported adjusted net earnings of $.12 per diluted share ($15.5 million) for the fiscal 2019 first quarter.  Net sales for the fiscal 2019 first quarter were approximately $2.6 billion, a decrease of approximately 6.6% compared to the prior year period.  Comparable sales in the fiscal 2019 first quarter declined approximately 6.6%.

Capital Allocation

On July 8, 2019, the Company’s Board of Directors declared a quarterly dividend of $0.17 per share payable on October 15, 2019 to shareholders of record at the close of business on September 13, 2019.

During the fiscal 2019 first quarter, the Company repurchased approximately $81.5 million of its common stock, representing approximately 5.3 million shares.

The Company ended the fiscal 2019 first quarter with approximately $923 million in cash and investments, an increase of approximately 9.0%, compared with approximately $847 million in cash and investments at the end of the fiscal 2018 first quarter.

Fiscal 2019 Financial Outlook

For the fiscal 2019 full year, excluding the goodwill and other impairments, severance and shareholder activity costs, the Company is modeling to be at the lower end of its previously provided ranges of $11.4 billion to $11.7 billion for net sales and $2.11 to $2.20 for net earnings per diluted share.

Due to the inherent difficulty of forecasting the timing or amount of items that have not yet occurred and are out of the Company’s control, and that would impact its net sales, diluted net earnings per share, and the most directly comparable forward-looking GAAP financial measures, the Company has not provided a reconciliation to these measures for its fiscal 2019 full year outlook on a GAAP basis. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

The Services sector company, Bed Bath & Beyond Inc. noticed change of 0.70% to $11.52 along volume of 14908887 shares in recent session compared to an average volume of 5203.23K. The stock observed return of 3.04% in 5 days trading activity. The stock was at -5.42% over one month performance. BBBY’s shares are at -37.63% for the quarter and driving a -45.74% return over the course of the past year and is now at 1.77% since this point in 2018.

The average volatility for the week at 3.60% and for month was at 3.73%. There are 130.39M shares outstanding and 126.62M shares are floated in market. Right now the stock beta is 1.2.

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Nattan Brooks

Nattan is a self-taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Nattan is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Earnings News category for our site.Address: 4188 Spadafore Drive, Erie, PennsylvaniaPhone number: 814-705-9247Email: [email protected] 

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