Thursday, April 7, 2011

Bed Bath & Beyond (BBBY) Soars on Upbeat Guidance

Full year earnings guidance from Bed Bath and Beyond Inc (NASDAQ:BBBY) surpassed Wall Street estimates, pushing up the shares of the retailer by over 10 percent in after-hours trading.

Earnings for the fiscal year ending in February 2012 is expected to come in from 10 to 15 percent above the $3.07 a share Bed Bath & Beyond reported in its fiscal year that just ended.

That means earnings for the next full year should be in a range of $3.38 to $3.53 a share. Analysts had been looking for $3.33 a share.

Net income for the quarter climbed to $283.5 million, or $1.12 a share, in the fourth quarter, which ended on February 26, from $226.0 million, or 86 cents a share, in the same quarter last year.

Sales increased to $2.50 billion, from $2.24 billion last year.

Analysts on average had projected earnings of 97 cents a share on sales of $2.39 billion.

Same-store sales, a key gauge of retail health, was up 8.5 percent in the quarter, which included the Christmas shopping season.

For the current quarter, BBBY said earnings should be in a range of 58 cents to 61 cents a share. Analysts are looking for 61 cents a share.

Bed Bath & Beyond closed Wednesday at $49.39, gaining $0.49, or 1.00 percent. After hours they climbed to $54.45, up $5.06, or 10.24 percent.

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