What a ride Bed Bath & Beyond (NASDAQ:BBBY) shareholders have been on this year. When we first invested in the company back at the start of February the share price was below $43.00 and we slapped a $52 price target on it. It duly delivered on this but has come crashing back down again since. Now priced at $44.07 we think it could be a good investment today ahead of its first quarter earnings.
The market sure can be a cruel place. This drop came despite the company producing a better than expected fourth quarter which saw earnings per share of $1.85 on revenue of $3.42 billion. This was a 4 cent beat on the bottom line and a $30 million beat on the top. It was the guidance that did it. Bed Bath & Beyond has given full year earnings per share guidance of $5.00, which will be a drop from the $5.10 it achieved last year.
