Shares of Bath & Body Works (BBWI) surged in pre-market trading after the company reported strong results. The specialty retailer reported adjusted earnings of $0.48 per share in the third quarter, above consensus estimates of $0.47 per share.
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Furthermore, the company’s revenues increased by 3% year-over-year to $1.6 billion in the third quarter. This surpassed Street estimates of $1.58 billion.
BBWI Issues Outlook
Looking ahead, the company raised its FY24 guidance and now expects adjusted earnings between $3.15 per share and $3.2 per share. Furthermore, it narrowed its outlook for net sales and projects a decline in the range of 2.5% to 1.7% year-over-year, compared to its prior estimate of a drop between 2% and 4%. For reference, analysts were expecting the company to report earnings of $3.2 per share and revenues to fall by 2.5% year-over-year.
Additionally, the retailer expects its Q4 revenues to decline in the range of 6.5% to 4.5% while adjusted earnings are likely to be $2.06 per share.
Is BBWI a Good Stock to Buy?
Analysts remain cautiously optimistic about BBWI stock, with a Moderate Buy consensus rating based on nine Buys, five Holds, and one Sell. Year-to-date, BBWI has plunged by more than 25%, and the average BBWI price target of $41.20 implies an upside potential of 34.2% from current levels. These analyst ratings are likely to change following BBWI’s results today.
