Bed Bath & Beyond (BBBY, $11.52) fiscal Q1 adjusted earnings exceed estimates, amidst losses from impairment and severance charges

Bed Bath & Beyond Inc. reported losses for its fiscal-first-quarter, as costs related to goodwill impairment and severance tugged at its bottom line. However, adjusted earnings beat estimates.

For the quarter ended June 1, the household-goods retail chain posted a loss of -$371.1 million (or -$2.91 a share), compared to earnings of $43.6 million (or 32 cents) in the year-ago period.

However, adjusting for the impairment charge as well as severance and other costs, Bed Bath & Beyond’s earnings came in at 12 cents a share, which surpassed analysts’ estimates of adjusted earnings of 8 cents per share. Still, the company’s adjusted earnings were much lower from the year-ago quarter’s 38 cents.

Bed Bath & Beyond’s $401 million impairment charge follows a similar non-cash charge of more than $500 million in the previous quarter.

Sales for the latest quarter declined -6.6% year-over-year to $2.57 billion. FactSet's consensus estimate was $2.58 billion.

The company’s comparable-store sales fell -6.6% in the quarter.

Looking ahead, the company projects to the lower end of its previously provided range of $2.11 to $2.20 of profit,  excluding the impairments and costs, for the full fiscal year.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.