Retail

Bed Bath and Beyond soars more than 20% on improved 2019 earnings guidance

Key Points
  • The company said it is ahead of schedule in terms of slowing down the declines in operating profit and net earnings per share, plus increasing net earnings per share by 2020.
  • It also said that its fiscal 2019 earnings per share will be about the same as 2018's. 
  • This quarter, the company beat expectations in earnings per share. It earned 18 cents per share, while analysts expected 17 cents per share.
Bed Bath & Beyond, a home goods store, at Jacksonville Beach, Florida
Diane Macdonald | Getty Images

Bed Bath & Beyond said it is ahead of its long-term financial goals in its quarterly earnings released on Wednesday. The stock soared more than 20 percent after hours.

The company said it is ahead of schedule in terms of slowing down the declines in operating profit and net earnings per share, plus increasing net earnings per share by 2020. It also said that its fiscal 2019 earnings per share will be about the same as 2018's, a big beat over Wall Street's consensus, which projected a 21 percent decline.

That news outweighed disappointing same-store sales and third-quarter results that were roughly in line with expectations.

Same-store sales declined 1.8 percent during the quarter, more than the 0.3 percent decline that analysts had forecast.

In the third quarter, the company reported earnings of 18 cents per share, slightly better than the 17 cents per share that analysts expected, according to a Refinitiv consensus estimate. Bed Bath & Beyond reported revenue of $3.03 billion, just shy of the $3.04 billion analysts expected.

In the second quarter, the company lost almost a quarter of its value after it reported disappointing earnings.

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