FMP
Bed Bath & Beyond Shares Plummet 23% on Disappointing Q1 Results
Jun 30, 2022 11:04 AM - Davit Kirakosyan
Image credit: FMP
Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares plunged more than 23% on Wednesday following the company’s reported disappointing Q1 results, with EPS of ($2.83) coming in significantly worse than the Street estimate of ($1.32). Revenue was $1.46 billion, missing the Street estimate of $1.53 billion. Comparable sales dropped 23%, compared to the expected 19.4% decline.
According to the analysts at Wedbush, the company finds itself in an unenviable position as it faces steep market share losses, an overabundance of inventory, and dwindling cash reserves.
The analysts, who lowered their price target to $5 from $7 following the results, said that pushing too hard on an owned brand merchandising transformation proved hazardous for the company given very long order lead times compounded by external supply chain pressures.
The analysts believe the company would have been better served moving slower on merchandising, and first focusing on fixing its poor IT and supply chain systems.
Other Blogs
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
P/E Ratios Using Normalized Earnings
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
What is Price To Earnings Ratio and How to Calculate it using Python
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
VMware Stock Drops 12% as China May Hold Up the Broadcom Acquisition
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...
