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Omar Venerio
Omar Venerio
Articles (1512) 

Dow Jones Passes 27,000 for the 1st Time

Bed Bath & Beyond slumps on quarterly results

Dow stocks were bullish on Thursday, with investors adjusting their expectations for lower interest rates. The Dow Jones Industrial Average passed 27,000 for the first time. The S&P 500 index declined 0.13% to 2,998 and the Nasdaq Composite Index fell 0.35% to 8,173.

Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) fell more than 5% on Thursday morning after the company announced first-quarter results. Revenue declined 6.5% from the prior-year quarter to $2.57 billion, $10 million short of analysts’ expectations. The company registered earnings of 12 cents per share, beating estimates by 4 cents.

"Bed Bath & Beyond is an iconic brand with tremendous opportunity and we recognize that there needs to be a fundamental change in our approach to executing the Company's business transformation," Interim CEO Mary Winston said. "We have set four key near-term priorities that include stabilizing and driving top-line growth; resetting the cost structure; reviewing and optimizing the Company's asset base, including our portfolio of retail banners; and refining our organization structure.”

During the quarter, the gross margin declined 50 basis points to 34.5%. The selling, general, and administrative costs increased while the declining revenue caused the margin to be compressed.

Further, the company repurchased $81.5 million worth of its common stock, about 5.3 million shares.

Looking ahead to fiscal 2019, the company expects net sales between$11.4 billion and $11.7 billion. It also projects earnings per diluted share of $2.11 to $2.20.

During the quarter ended March 31, Mario Gabelli (Trades, Portfolio) exited his position and Philippe Laffont (Trades, Portfolio) reduced his holding by 40.26% to 26,282 shares. On the other hand, Chuck Royce (Trades, Portfolio) boosted his position by 229.7% to 189,344 shares.

Gainers

Losers

Global markets

The main European stock markets traded mostly lower. The U.K.'s FTSE 100 dipped 0.28%, France's CAC 40 lost 0.28%, Germany's Dax slipped 0.33% and Spain's IBEX 35 rose 0.30%.

In Asia, Japan's Nikkei 225 gained 0.51%, India’s BSE Sensex rose 0.69%, Hong Kong's Hang Seng advanced 0.81% and China's Shanghai Composite swelled 0.08%.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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