Bed Bath & Beyond Inc. (BBBY) double-digit top-line growth helped BBBY beat expectations once again on, sending estimates higher.
Company Description
Bed Bath & Beyond runs chain retail stores mainly under the Bed Bath & Beyond name, but also has a few other brands. The company focuses on various domestic and home furnishings from food, gifts and beauty products.
Sales up 17%
On Apr 7 Bed Bath & Beyond reported quarterly results that showed a 17% increase in sales, included an 11.5% improvement in same-store sales.
Bed Bath & Beyond earned $226 million, or 86 cents per share, which was 14 cents ahead of the Zacks Consensus Estimate. This was the fifth consecutive earnings surprise.
Estimates Pop
Following the report we received 17 upward estimate revisions for full-year 2011, the current year. The consensus jumped 22 cents to $2.70. Next year’s estimates are averaging $2.97, up 15 cents.
These levels represent growth rates of 18% and 10%, respectively.
The Chart
Shares of BBBY saw a nice bump on the news after trading sideway for a couple weeks. The new estimates are keeping valuations in check as the forward P/E is now
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service Zacks Investment Research
