Build-A-Bear Workshop: Market's Overreaction To Q1 Results Offers An Attractive Opportunity
Build-A-Bear Workshop experienced a drop in stock price despite strong financial results and guidance for a record-breaking year. The company has a strong balance sheet, expanding internationally with low capital expenditures, and a focus on brand strength and customer experience. Quarterly dividend plan, share buybacks, and projected growth in net income support a compelling investment opportunity with a fair stock price estimate of $38.50 per share.
Build-A-Bear Workshop: The Reasons Why We Downgrade To Hold
BBW stock price has substantially dropped after missing both top- and bottom line estimates. Quarterly results show decline in revenues and earnings, impacted by weakening demand and macroeconomic environment. BBW stock currently fairly valued, not expected to outperform broader market; downgrade from "buy" to "hold" due to financial performance and macroeconomic concerns.
Build-A-Bear Workshop, Inc. (BBW) Q1 2024 Earnings Call Transcript
Build-A-Bear Workshop, Inc. (NYSE:BBW ) Q1 2024 Earnings Conference Call May 30, 2024 9:00 AM ET Company Participants Gary Schnierow – Vice President-Investor Relations and Corporate Finance Sharon Price John – Chief Executive Officer Voin Todorovic – Chief Financial Officer Conference Call Participants Eric Beder – SCC Research Greg Gibas – Northland Securities Steve Silver – Argus Research Keegan Cox – D.A. Davidson Operator Greetings and welcome to the Build-A-Bear Workshop's First Quarter 2024 Earnings Call.
Build-A-Bear (BBW) Lags Q1 Earnings and Revenue Estimates
Build-A-Bear (BBW) came out with quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $0.98 per share a year ago.
Build-A-Bear Workshop: Why The Company Is Still Attractive Here
Build-A-Bear Workshop stock is up over 30% YTD, outperforming major stock indexes due to improved profitability and revenue growth. The company's high margin businesses segments are slowly emerging, with revenue more than doubling over the past three years. My buy rating arises from BBW's robust financials, solid product offering and pricing, as well as its growth opportunities.
