Barnes & Noble Increases Sales but Misses Revenue Estimate

Barnes & Noble (NYSE: BKS ) reported earnings on June 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q4), Barnes & Noble missed estimates on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share improved.

Margins expanded across the board.

Revenue details
Barnes & Noble logged revenue of $1.38 billion. The five analysts polled by S&P Capital IQ predicted sales of $1.47 billion on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $1.37 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.53. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.95 per share. GAAP EPS were -$1.08 for Q4 versus -$1.04 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.9%, 140 basis points better than the prior-year quarter. Operating margin was -5.1%, 50 basis points better than the prior-year quarter. Net margin was -4.2%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is -$1.14.

Next year's average estimate for revenue is $7.55 billion. The average EPS estimate is -$0.74.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 304 members out of 648 rating the stock outperform, and 344 members rating it underperform. Among 164 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Barnes & Noble a green thumbs-up, and 103 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Barnes & Noble is hold, with an average price target of $15.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended writing puts on Barnes & Noble. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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