Barnes & Noble
The 10-second takeaway
For the quarter ended Jan. 28 (Q3), Barnes & Noble missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Gross margins improved, operating margins contracted, net margins dropped.
Barnes & Noble reported revenue of $1.89 billion. The four analysts polled by S&P Capital IQ expected net sales of $1.98 billion on the same basis. GAAP reported sales were 4.9% higher than the prior-year quarter's $2.33 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.17. The one earnings estimate compiled by S&P Capital IQ anticipated $0.15 per share on the same basis. GAAP EPS of $0.71 for Q2 were 29% lower than the prior-year quarter's $1.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.8%, 40 basis points better than the prior-year quarter. Operating margin was 3.7%, 120 basis points worse than the prior-year quarter. Net margin was 2.1%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.53 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $7.25 billion. The average EPS estimate is -$1.10.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 302 members out of 614 rating the stock outperform, and 312 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Barnes & Noble a green thumbs-up, and 94 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 $15.63.
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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. 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.