Sterne Agee Maintains Neutral Rating On Bed Bath & Beyond

According to Sterne Agee, Bed Bath & Beyond BBBY estimates are raised. Sterne Agee said that BBBY reported another impressive beat, with Q1 EPS excluding a one-time tax benefit of $0.71 (vs. $0.52 LY), well above our estimate and FC of $0.63, both of which were above the high end of the $0.58- $0.61 guidance range. “Maintaining Neutral rating. While we continue to view BBBY as a strong and consistent operator with viable long-term growth prospects, we remain concerned in the near to intermediate term by negative mix shift to lower margin categories (both within the core Bed Bath & Beyond concept and from growth of the newer/lower margin concepts) and the potential for more normalized SG&A leverage on decelerating comp trends (given an already lean expense philosophy).” Bed Bath & Beyond closed yesterday at $54.06.