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Bed Bath & Beyond Inc.: The Fall Continues...

Bed Bath & Beyond Inc. (NASD: BBBY)

  • Consensus EPS Estimate for FQ1 2021 is -$1.30

  • Consensus Revenue Estimate for FQ1 2021 is $1.38B

  • EPS Revisions the past 90 days include 3 upward and 13 downward

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Bed Bath & Beyond Inc. to share its fiscal first-quarter results Wednesday afternoon. Analysts expect to see a per-share net loss of $1.21 and $1.35 billion in revenue. Shares met resistance at $11 for much of last week. The consensus price target is down at $7.58, and the stock has a 52-week trading range of $3.43 to $17.79.

The upcoming announcement covers the selling months of March, April, and May, and so it will capture the greatest impact from social distancing efforts to date, along with some likely positive trends around e-commerce shopping, cash savings, and consumer interest in home supplies and furnishings.

Let’s Take a Closer Look at BBBY Stock

From a technical standpoint, the coronavirus crisis was another leg down in a prolonged series of declines for BBBY stock. The carnage commenced in 2015 when BBBY began its painful and protracted retreat from the $76 level.

At this point, it’s conceivable that BBBY shareholders won’t see that peak price during the next several years, if at all. Even the short-term rally witnessed at the end of last year wasn’t sustainable. BBBY stock managed to reach $17 in December, but by April it was trading below $4 per share. (source: David Moadel, InvestorPlace Contributor)

A brutal sales period

Bed Bath & Beyond was struggling with poor sales trends before COVID-19 struck North America. Sales fell 6% in the previous quarter that ran through late February, but that figure will surely balloon in this week's report.

Most investors who follow the stock are expecting sales to decline by nearly 50% thanks to the temporary store closures that kept most of its retail locations off-limits for customer browsing through the quarter. The key question is how successful the chain was at shifting some of that demand to its online channels. Many of its stores offered curbside service and management noted surging interest in April for a wide range of products that reflected people's increasing time spent at home.

We'll find out on Wednesday whether soaring digital demand for things like bread machines, coffeemakers, and air purifiers allowed the chain to maintain its relationship with many of its shoppers over the past few months. (source:Demitrios Kalogeropoulos(TMFSigma)

We are bearish longterm and see little future for the company.