Why Bed Bath & Beyond (BBBY) is Being Decimated

NEW YORK (TheStreet) -- Bed Bath & Beyond (BBBY) is being decimated in after-hours trading following a third-quarter earnings release left something to be desired. Shares clipped 8.4% to $73 after the bell.

The homewares retailer reported net income of $1.12 a share for the quarter ended Nov. 30, 2013, several cents short of the $1.15 analysts surveyed by Thomson Reuters had anticipated. Revenue of $2.86 billion was slightly lower than the $2.88 billion expected, but was 6% higher than the year-ago quarter.

Comparable store sales, however, came in 1.3% higher compared to a 1.7% increase in the same quarter in 2012.

Earnings for the fourth quarter are forecast between $1.60 and $1.67 a share, significantly lower than consensus of $1.78 a share. For the full year, Bed Bath & Beyond expects earnings in the range of $4.79 to $4.86 a share, compared to analysts' expectations of $5.01 a share.

TheStreet Ratings team rates BED BATH & BEYOND INC as a Buy with a ratings score of A-. The team has this to say about their recommendation:

"We rate BED BATH & BEYOND INC (BBBY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, notable return on equity and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."