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. (BBBY, Financial) 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
- Cigna Corp. (CI, Financial)
- UnitedHealth Group Inc. (UNH, Financial)
- CVS Health Corp. (CVS, Financial)
- Humana Inc. (HUM, Financial)
- DaVita Inc. (DVA, Financial)
Losers
- Iron Mountain Inc. (IRM, Financial)
- Fastenal Co. (FAST, Financial)
- Bristol-Myers Squibb Co. (BMY, Financial)
- Conagra Brands Inc. (CAG, Financial)
- Cimarex Energy Co. (XEC, Financial)
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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