Connect with us

Hi, what are you looking for?


Bath & Body Works shares up 25% on Q3 results: should you take profits?

Bath & Body Works Inc (NYSE: BBWI) jumped nearly 25% in extended trading after the retail chain reported better-than-expected results for its fiscal third quarter.

Should you sell Bath & Body Works shares into the strength?

Investors are also rewarding the raised future guidance.

Bath & Body Works now expects to earn $3.0 a share to $3.20 a share this year, including up to $1.65 in Q4, as per the earnings press release. In comparison, analysts were at $1.54 for the quarter and $2.89 for fiscal 2022 as a whole.

But that’s not sufficient to get Victoria Greene (G Squared Private Wealth) excited about the Bath & Body Works shares. On CNBC’s “Power Lunch”, she said:

I can’t get on board with it. It’s burning free cash flow, cash on hand has dwindled the past three quarters versus a debt at $6.0 billion. Sales are 5.0% lower. I just don’t see the catalyst other than that it’s cheap, but it might be cheap for a reason.

She expects to stock to be range bound between $30 and $40.

Then, of course, there’s fear of a recession and it remains to be known how well beauty products and personal-care items hold up in the face of a consumer slowdown.

Bath & Body Works tops estimates in its third quarter

Net income was cut nearly in half from $177 million to $91 millionPer-share earnings also fell significantly from 66 cents to 40 centsRevenue at $1.60 billion was also down 5.0% versus a year agoConsensus was 20 cents a share of EPS on $1.56 billion in revenue

Bath & Body Works Inc has been committed to cutting costs in recent months. Earlier in November, it named Gina Boswell as its new Chief Executive to take the helm on December 1st.

At $39, Bath & Body Works shares in after-hours are trading just below their 200-day Moving Average. The retail stock is still down nearly 45% for the year.

The post Bath & Body Works shares up 25% on Q3 results: should you take profits? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.