Bed Bath & Beyond well positioned after buyback

Bed Bath & Beyond Inc will announce its second-quarter figures on Thursday 25 September. The consensus is for revenue of $2.89 billion and earnings per share of $1.41.

Bed Bath & Beyond logo
Source: Bloomberg

The company is trading at the $64.69 level. The share price is up 6% since it reported its first-quarter results in which revenue and EPS both missed estimates. The share price initially dropped below $55 but has since bounced back and is now trading higher than the June announcement.

In early July, Bed Bath & Beyond announced a $2 billion share buyback scheme which will be completed in February 2015. The move highlights the confidence in the company’s ‘financial outlook and cash flow generation’ says the CEO Steven Temares.

Equity analysts are relatively bullish on the company. Out of the 31 ratings, nine are buys, 17 are holds and only five are sells.

The stock is receiving support at the 50-day moving average of $62.88 and if the company’s projections for the full-year are positive, it could target $69.12.

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