Bed Bath & Beyond (BBBY $66.00 -7.67) reported first quarter earnings of $0.89 per share, $0.05 better than the Capital IQ consensus of $0.84, while revenues rose 5.1% year/year to $2.22 billion versus the $2.24 billion consensus. Q1 comparable same store sales of +3%; Q4 comps +6.8% and Q1 year ago +7.0%. Co issues downside guidance for Q2, sees EPS of $0.97-1.03 vs. $1.08 Capital IQ Consensus Estimate.
Assuming the tender offer is completed as anticipated during Q2, the co's modeling of net earnings per diluted share, including transaction and integration costs, would decrease by several cents for Q2. For the fiscal second half, net earnings per diluted share, including integration costs, would increase and be slightly accretive. Co reaffirms it is modeling for FY13 net EPS increase by a high single to a low double digit percentage range (current consensus is +14.0% EPS growth).






