Home goods retailer Bed Bath & Beyond Inc. (BBBY: Quote) said Wednesday after the markets closed that its fourth quarter profit rose a modest 6.5% from last year, as higher costs and expenses dented a 24.5% sales growth.
The company’s quarterly earnings per share came in line with analysts’ expectations, but its quarterly sales just managed to beat analysts’ forecast. However, the company forecast first quarter earnings below analysts’ current consensus estimate.
During the fourth quarter, the company repurchased about $305 million of its common stock, representing about 5.3 million shares. As of March 2, the remaining balance of the existing share repurchase program authorized in December was about $2.4 billion.
Bed Bath & Beyond shares are currently gaining 2.14% in after hours trading after closing the day’s regular trading session at $65.50, up $1.00 or 1.55%. The shares trade in a 52-week range of $54.33 to $75.84.
The Union, New Jersey-based company operates a chain of retail stores under the names of Bed Bath & Beyond, World Market, Cost Plus World Market, World Market Stores, Christmas Tree Shops, andThat!, Harmon, Harmon Face Values and buybuy BABY, selling a wide assortment of domestics merchandise and home furnishings.
For the fourth quarter ended March 2, 2013, the company reported net income of $373.9 million or $1.68 per share, compared to $351.0 million or $1.48 per share for the year-ago quarter.
On average, 25 analysts polled by Thomson Reuters expected the company to earn $1.68 per share for the fourth quarter.
For the fourth quarter, the company had forecast earnings of $1.60 to $1.67 per share.
Net sales for the fourth quarter rose 24.5% to $3.40 billion from $2.73 billion in the same quarter last year. Same-store sales for quarter increased about 2.5% Twenty-two analysts had a consensus revenue estimate of $3.39 billion for the fourth quarter.
Looking forward, the company forecast first quarter earnings of $0.88 to $0.94 per share.
At the same time, the company forecast its fiscal 2013 earnings per share to grow in a mid single to a low double digit percentage range.
Analysts currently expect the company to earn $0.95 per share for the first quarter and $5.03 per share for the fiscal year 2013.
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by RTT Staff Writer
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