Barnes & Noble Earnings: Here’s Why Investors are Selling Shares Now

Barnes & Noble, Inc. (NYSE:BKS) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 14.28%.

Barnes & Noble, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.86 in the quarter versus EPS of $-0.78 in the year-earlier quarter.

Revenue: Decreased 8.53% to $1.33 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Barnes & Noble, Inc. reported adjusted EPS loss of $0.86 per share. By that measure, the company beat the mean analyst estimate of $-0.89. It beat the average revenue estimate of $1.32 billion.

Quoting Management: “Our top priority in our operating strategy is to increase all categories of our content revenue. We are working on innovative ways to sell content to our existing customers and are exploring new markets we can serve successfully,” said Michael P. Huseby, President of Barnes & Noble, Inc. and Chief Executive Officer of NOOK Media. “The company intends to continue to design and develop cutting-edge NOOK black and white and color devices. We will continue to offer our award-winning line of NOOK products including NOOK Simple Touch®, NOOK Simple Touch® with Glow Light®,NOOK® HD and NOOK® HD+ at the best values in the marketplace. At least one new NOOK device will be released for the coming holiday season and further products are in development. All NOOK devices will continue to be backed by world-class pre- and post-sales support in Barnes & Noble stores, as well as ongoing software upgrades and improvements to the digital bookstore service.”

Key Stats (on next page)…

Revenue increased 4.11% from $1.28 billion in the previous quarter. EPS decreased to $-0.86 in the quarter versus EPS of $-1.80 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.27 to a profit $0.23. For the current year, the average estimate has moved up from a loss of $1.19 to a loss of $0.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]