NEW YORK (TheStreet) -- Bed Bath & Beyond (BBBY) - Get Report stock is up by 5.49% to $51.49 in mid-morning trading on Thursday, after the retailer reported better-than-expected 2015 fourth quarter results.
After the market close Wednesday, Bed Bath & Beyond reported earnings of $1.91 per share, higher than Wall Street's forecasts for $1.81 per share. Revenue of $3.42 billion topped analysts' estimates for $3.39 billion.
However, the company has been disadvantaged by historically spending on share buybacks rather than improving its technology, TheStreet's Action Alerts PLUSPortfolio Manager Jim Cramer wrote in aReal Money article today.
Now, Bed Bath & Beyond struggles to compete against Amazon.com (AMZN), he said.
"The conference call was filled with every omnichannel digital customer retention and customer satisfaction buzzword of the new age," Cramer said. "The endless coupon stock in trade even seemed to come under fire as atavistic. But in the end, here's the problem: While Bed Bath now has 500 IT professionals, and it has welcomed the new world, I think it might be too late for them."
Separately, Bed Bath & Beyond has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, attractive valuation levels and good cash flow from operations, and its weaknesses including deteriorating net income, generally disappointing stock performance and feeble earnings per share growth.
You can view the full analysis from the report here: BBBY
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.