The Bed Bath & Beyond stock price surged on Wednesday after the company impressed investors with its earnings report. The BBBY stock surged to a high of $39.27, which was the highest it has been since June 8. That brought the total market capitalization of the retailer to more than $3.55 billion.
Bed Bath & Beyond earnings. BBBY released relatively strong quarterly results on Wednesday. The firm made net sales of $1.95 billion, with core sales rising by 73% above the previous guidance. The revenue was higher than the median estimate by more than $80 million.
The firm also reported strong adjusted gross margin and an EBITDA of more than $86 million. The company also talked about its recent brand launches like Nestwell, Haven, and Simply Essential. Most importantly, the firm talked about its relationship with DoorDash, which will see it deliver products on the same day. The management said:
“In Q1, we recaptured market share on a year-over-year basis, with significant gains in our key categories of Bed, Bath, and Kitchen. We also experienced sequential monthly improvement particularly in the Bed category.”
This growth was likely because of the recent publicity the company has gathered since becoming a meme stock. The ongoing reopening in the country has also helped the company. So, what next for the BBBY stock in July?
Bed Bath & Beyond stock price forecast
The BBBY stock price did what I predicted early this week. The stock rose sharply after it delivered its quarterly earnings. On the four-hour chart, the stock is being supported by the rising blue trendline. It is also being supported by the 25-day and 50-day exponential moving averages.
Further, it is still slightly below the June high at $44. Therefore, while the stock will likely be volatile in July, I suspect that bulls will attempt to move to the June high at $44. On the flip side, a drop below the ascending trendline will open the possibility of the shares dropping to the support at $23.
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BBBY stock chart
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