Bed Bath & Beyond Stock Soars on Earnings Beat: Will It Last?

After a dismal performance in fiscal 2019, Bed Bath & Beyond (NASDAQ: BBBY) got off to an awful start in fiscal 2020. The COVID-19 pandemic caused sales to plunge 49% in the first quarter, leading to a $243 million adjusted net loss and a $302 million net loss under generally accepted accounting principles (GAAP).

Bed Bath & Beyond made a big comeback in the second quarter, surprising analysts with comparable sales growth and a quarterly profit. Bed Bath & Beyond stock jumped 38% in the two days following the earnings report last week, rallying to a 52-week high. However, investors may be overestimating the company's turnaround progress. Bed Bath & Beyond is not out of the woods yet.