Barnes & Noble
The 10-second takeaway
For the quarter ended Jan. 26 (Q3), Barnes & Noble missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Barnes & Noble logged revenue of $2.22 billion. The five analysts polled by S&P Capital IQ expected sales of $2.40 billion on the same basis. GAAP reported sales were 8.8% lower than the prior-year quarter's $2.44 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.18. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS were -$0.18 for Q3 against $0.71 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 210 basis points worse than the prior-year quarter. Operating margin was 0.0%, 370 basis points worse than the prior-year quarter. Net margin was -0.3%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is -$0.86.
Next year's average estimate for revenue is $7.12 billion. The average EPS estimate is -$1.08.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 309 members out of 665 rating the stock outperform, and 356 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Barnes & Noble a green thumbs-up, and 108 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 $17.43.
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