Barnes & Noble Shares Got Burned: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of bookseller Barnes & Noble (NYSE: BKS  ) got burned today, down by 24% at the low before closing off more than 16%, after the company reported a surprise loss in the second quarter.

So what: Revenue for the quarter came in at $1.9 billion, which generated a net loss of $0.17 per share. Both figures fell short, as the market was expecting $2 billion in sales and a profit of $0.03 per share.

Now what: B&N believes its full-year EBITDA will be on the low end of the previously announced guidance of $210 million to $250 million. After the quarter closed, the company released its Nook Tablet, which B&N says is now the fastest-selling Nook product, and the overall Nook business between all segments had revenue of $220 million. The digital segment, BN.com, continues to lose money while showing the most revenue gains as the company continues to invest in future growth.

Interested in more info on Barnes & Noble? Add it to your watchlist.

Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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