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Bed Bath & Beyond (NASDAQ:BBBY) Reporting Q2 Today; Here’s What to Expect
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Bed Bath & Beyond (NASDAQ:BBBY) Reporting Q2 Today; Here’s What to Expect

Story Highlights

Bed Bath & Beyond is set to report its second-quarter results on Thursday. Rapid cash burn, strained merchandise supplier relationships, a truckload of debt, and weak execution will continue to dominate the tone of the quarter.  

Meme stock Bed Bath & Beyond (BBBY) is set to release its second quarter Fiscal 2022 results on September 29, before the market opens. Bed Bath & Beyond is an American retail chain store selling merchandise and home furnishings.

The Street expects BBBY to post an adjusted loss of $1.80 per share in Q2. In the comparative prior year period, the company reported an adjusted profit of $0.04 per share. Meanwhile, revenue is pegged at $1.45 billion, representing a massive year-over-year decline of 26.8%, and marginally lower than Q1FY22 revenue of $1.46 billion.

Persistent Headwinds Continue to Drag Down Performance

In light of the recent recessionary trends, Bed Bath & Beyond’s problems seem to have no end.

The company has undertaken a rigorous turnaround strategy, including shutting down stores, laying off employees, and taking up additional lending to prepare for the holiday season. On the other hand, BBBY’s board has decided to issue 12 million additional equity shares to repay its outstanding obligations.

Analysts, however, believe these steps may not be enough to save the failing retailer, suffering from severe cash burn and weak business momentum. Several analysts have downgraded BBBY stock in the current year and significantly slashed their price targets on the stock.

What is the future of BBBY Stock?

Currently, BBBY is treading unfavorable territory amid the tough macroeconomic backdrop. There is a lot of uncertainty regarding BBBY’s future stock trajectory. Nonetheless, the meme frenzy keeps the stock actively traded with high daily volumes on the stock exchange. BBBY stock has lost nearly 58% so far this year.

On TipRanks, analysts have a Strong Sell consensus rating on BBBY stock. This is based on one Hold versus 10 Sells. The average Bed Bath & Beyond price forecast of $4.00 implies a 38% downside potential to current levels.

Ending Thoughts

Bed Bath & Beyond needs well-experienced and solid management to steer the company out of the troubled waters. The turnaround strategy may work, but it will take a very long time to bear fruit. Meanwhile, all the financial experts, including analysts, hedge funds, and bloggers, remain pessimistic about the retailer’s short-term growth potential.

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