Please ensure Javascript is enabled for purposes of website accessibility

Why Barnes & Noble, Inc. Stock Jumped 13.4% in June

By Steve Symington - Jul 4, 2017 at 4:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The bookseller's shares bounced on an encouraging quarterly report. Here's what investors need to know.

What happened

Shares of Barnes & Noble Inc. (BKS) gained 13.4% in the month of June, according to data provided by S&P Global Market Intelligence, after the retail bookseller announced better-than-expected quarterly results.

So what

Barnes & Noble stock jumped more than 14% over the two days following its official June 22 earnings release. The company confirmed that fiscal fourth-quarter 2017 revenue declined 6.3% year over year to $821.2 million, and translated to a net loss of $13.4 million, or $0.19 per share, narrowed from a net loss of $30.6 million, or $0.42 per share in the same year-ago period. Both the top and bottom lines were ahead of analysts' consensus estimates, which called for a loss of $0.23 per share on revenue of $782.5 million. 

Exterior of Barnes & Noble store

Image source: Barnes & Noble.

Now what

Barnes & Noble CEO Demos Parneros admitted that fiscal 2017 was "a challenging year for the company," but also noted its efforts to reduce costs allowed the company to effectively sustain its profitability level.

"In fiscal 2018," Parneros added, "we are focusing on ways to improve the business and reignite sales through an aggressive test and learn process and companywide simplification process that will take out costs."

Of course, that also means Barnes & Noble has plenty of work to do before it achieves sustained profitability and returns to top-line growth. But considering its sales declined less than expected while its losses continued to narrow, it was no surprise to see investors bid up Barnes & Noble stock last month.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Barnes & Noble, Inc. Stock Quote
Barnes & Noble, Inc.
BKS

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.