Shares of the Bed Bath & Beyond Inc. (BBBY) stock were popping high in the current market following the announcement of the third quarter of 2021 financial results. BBBY stock price saw a surge of 7.30% to reach $14.34 a share at the time of this writing. The trading volume on the last check was 24,168,082, far higher than the average trading volume. Let’s deep dive to explore more of it.
Q3 Highlights of BBBY stock
According to the third quarter of fiscal 2021 ended November 22, 2021,
- Net sales of the company in the reported quarter were $1,878 million, representing a 28% decline from the comparable period of the previous year. Comparable sales showed a decline of 7% as compared to the same period of the previous year.
- GAAP gross margin in the third quarter of 2021 was 35.6% for the BBBY stock. The company reported an adjusted GAAP gross margin of 35.9% in the reported quarter. This represents an improvement of 320 basis points in merchandise margin from the same period of the previous year.
- Net loss per diluted share of the BBBY stock was $2.78 in the recently reported quarter. It reflects $2.53 of special items for the reported quarter.
- Operating cash flow in the third quarter of fiscal 2021 was $0.3 billion for the BBBY stock.
- As of December 25, 2021, the company had $0.7 billion in cash and cash equivalents. Total liquidity as of December 25, 2021, was approximately $1.6 billion.
Outlook of BBBY stock
- The company expects $2.1 billion in net sales in the fourth quarter of 2021. For the fiscal year 2021, the company is hoping to record $7.9 billion in net sales.
- BBBY projected the adjusted gross margin between 32.5% to 33.0% for the fourth quarter of 2021. Adjusted gross margin for the full fiscal year 2021 is expected in the range of 34.0% to 34.5%. The company is anticipating 34% adjusted SG&A for the fiscal year 2021.
- BBBY estimated the adjusted EBITDA in the range of $80 million to $100 million for the fourth quarter of 2021. The adjusted EBITDA for the full year 2021 is expected to be between $290 million to $310 million.
Though the financial results fell short of the analysts’ expectations, BBBY stock still climbed up in the current market. As the management has warned of the potential loss for the full year, investors need to be cautious before adding this stock to their portfolio.