Credit Suisse has reduced its 2015 and 2016 forecast on Bed Bath & Beyond following its 4QFY14 earnings released on Wednesday.
On Wednesday after market close Bed Bath & Beyond reported its fourth quarter earnings for the fiscal year 2014, followed by that announcement Credit Suisse reduced the future forecast for 2015 and 16 for the company.
The worrying numbers, for Seth Sigman an analyst were earnings of$1.80 per share, which was lower than the consensus estimate but was more than the previous year EPS of $1.60. The Profit of the company plunged by 4%. On the basis of these results, Sigman cut the earnings per share estimate to $5.22 from previous $5.49 for 2015 and to $.70 from $5.95 for 2016 respectively. Sigman at the moment maintains a price target of $70 on the stock of BBBY.
Mr. Sigman acknowledged the performance of Bed Bath and Beyond in a competitive retail and difficult market, which is now in competition with the e-commerce markets. The operating margin of the company has got subtle followed by the transparent market prices.
However, the reported figures for the quarter by the company were 3.7% of comparables and allotment of FCF (free cash flow) to stockholders through share buybacks, specified positivity. This was counterbalanced by the decrease in revenue from every transaction which was done by the customer. Operating margins have battered, and Earnings before Interest Tax Depreciation and Amortization growth has turned out to be difficult specified by only 3% growth in the quarter. Analysts at Credit Suisse believe that EBITDA of the company will further decline in the current fiscal year.
M. Sigman further stated that, “We continue to believe the key to Bed Bath & Beyond’s stock from these levels is the company being able to show investors that the margin declines they are experiencing will subside over time. At slightly more than 8 times forward EV/EBITDA going into yesterday's print, we expect Bed Bath & Beyond will sell off on the lower guidance. However, we expect value investors will continue to find Bed Bath & Beyond intriguing as they look to this high-quality management team, with hopes they eventually will stabilize the margin profile.”
Twenty-eight analysts had covered the stock of home furniture retailer; out of them eight assigned Buy rating while fifteen rated the stock as Hold. The twelve-month average price target is $76.17 which represent an upside potential of almost 2.7% compared to its latest closing price.
Bed Bath & Beyond share price is currently red by 5.91% and stood at $73.09 on Wednesday market close.
The worrying numbers, for Seth Sigman an analyst were earnings of$1.80 per share, which was lower than the consensus estimate but was more than the previous year EPS of $1.60. The Profit of the company plunged by 4%. On the basis of these results, Sigman cut the earnings per share estimate to $5.22 from previous $5.49 for 2015 and to $.70 from $5.95 for 2016 respectively. Sigman at the moment maintains a price target of $70 on the stock of BBBY.
Mr. Sigman acknowledged the performance of Bed Bath and Beyond in a competitive retail and difficult market, which is now in competition with the e-commerce markets. The operating margin of the company has got subtle followed by the transparent market prices.
However, the reported figures for the quarter by the company were 3.7% of comparables and allotment of FCF (free cash flow) to stockholders through share buybacks, specified positivity. This was counterbalanced by the decrease in revenue from every transaction which was done by the customer. Operating margins have battered, and Earnings before Interest Tax Depreciation and Amortization growth has turned out to be difficult specified by only 3% growth in the quarter. Analysts at Credit Suisse believe that EBITDA of the company will further decline in the current fiscal year.
M. Sigman further stated that, “We continue to believe the key to Bed Bath & Beyond’s stock from these levels is the company being able to show investors that the margin declines they are experiencing will subside over time. At slightly more than 8 times forward EV/EBITDA going into yesterday's print, we expect Bed Bath & Beyond will sell off on the lower guidance. However, we expect value investors will continue to find Bed Bath & Beyond intriguing as they look to this high-quality management team, with hopes they eventually will stabilize the margin profile.”
Twenty-eight analysts had covered the stock of home furniture retailer; out of them eight assigned Buy rating while fifteen rated the stock as Hold. The twelve-month average price target is $76.17 which represent an upside potential of almost 2.7% compared to its latest closing price.
Bed Bath & Beyond share price is currently red by 5.91% and stood at $73.09 on Wednesday market close.
No comments:
Post a Comment