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

Before you go, we thought you'd like these...
Before you go close icon

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 (NYS: 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 yourwatchlist.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners