Benzinga | Jun 30, 2021 10:45AM EDT

Bed Bath & Beyond Stock Jumps On Q1 Revenue Beat, Q2 Guidance Hike

* Bed Bath & Beyond Inc (NASDAQ:BBBY) reported first-quarter FY21 sales of $1.95 billion, up 49% year-on-year, beating the consensus estimate of $1.87 billion.

* Core Sales grew 73%; Comparable Sales rose 86% Y/Y.

* Sales were driven by growth in its key destination categories, which include Bedding, Bath, Kitchen Food Prep, Indoor Decor, and Home Organization.

* Adjusted gross margin increased 820 basis points to 34.9%.

* Adjusted EBITDA was $86 million.

* Adjusted EPS of $0.05 missed the consensus of $0.08.

* The company used $28.7 million in operating cash flow and ended the quarter with cash and equivalents of $1.2 billion.

* Guidance: BBBY raised FY21 sales guidance to $8.2 billion-$8.4 billion from $8 billion-$8.2 billion earlier, versus a consensus of $8.15 billion.

* It hiked adjusted EBITDA outlook to $520 million-$540 million from $500 million- $525 million earlier.

* Bed Bath sees Q2 EPS of $0.48-$0.55 versus the consensus estimate of $0.52.

* "For the first quarter, we delivered our fourth consecutive quarter of comparable sales growth with gross margin expansion exceeding our expectations," said Mark Tritton, Chief Executive Officer.

* Price action: BBBY shares are trading higher by 17.1% at $35.02 on the last check Wednesday.

* Photo by Tesa Robbins from Pixabay