Bed Bath and Beyond stock gets boost from earnings

Bed Bath & Beyond stock (BBBY) got a boost in trading Thursday after the big-box retailer posted a decent earnings report and launched a quarterly dividend.

After the market closed on Wednesday, the company  reported earnings per share of $1.91 in the quarter ended Feb. 27, up from $1.80 in the same period a year earlier.

That translated into net earnings of $303.5 million, down from $321 million — but the performance was "relatively good" in light of an uptick in investments required to keep pace with increased competition, Deutsche Bank analyst Mike Baker said in a research note.

"BBBY again outlined a myriad of areas with ongoing investment including technology, analytics, merchandising, and store operations — really across the board," Baker said. "Given the increased competition we are seeing in the space, we believe these investments are crucial for BBBY to maintain its share of wallet with the home décor customer."

The stock was off its earlier highs and was up 0.3% to $48.97 in afternoon trading after rising as high as $52.33.

The company also reported an initial quarterly dividend of 12.5 cents per share, which will be issued on July 19 to people who hold the shares as of June 17.

During the fiscal fourth quarter, sales at Bed Bath & Beyond stores open at least a year — a common gauge of a retailer's health — rose 1.7%.

Net sales increased 2.4% to $3.4 billion.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.