Bed Bath & Beyond is indicated higher this morning after taking a turn in the earnings confessional Wednesday afternoon. The domestics retailer noted that second-quarter net income rose fractionally to $147 million, or 55 cents per share, topping analysts' expectations by 3 pennies. Earnings were helped by a $5.8 million tax benefit, which lifted per-share results by 2 cents.
Sales were 10% higher during the reporting period to $1.77 billion equal to Wall Street's consensus view while same-store sales moved 2.2% higher.
In a statement that was delivered along with the results, company CEO Steve Temeres announced that In a segment where many continue to struggle, we continue to generate solid operating results. BBBY has an eye on growth, with plans to open 70 namesake stores in fiscal 2007 and additional locations planned for its Christmas Tree, Harmon, and buybuy BABY chains in future years.
For the fourth quarter, BBBY officials expect earnings per share to decline by a low-single to mid-single digit percentage from year-ago results of 79 cents.
Ahead of the open, the shares have gained 1.5% to overtake the 34 level. BBBY has been in declining mode since early April, trapped below its 10-week moving average, which is currently perched around 34.30. A solid earnings-related jump could challenge this trendline in today's trading.