Barnes & Noble Earnings Preview

Motley Fool Staff
Updated

If Barnes & Noble (NYS: BKS) misses estimates again, it will be the fifth consecutive quarter for the company. The company will unveil its latest earnings on Tuesday. Barnes & Noble sells books, magazines, music, and movies.

What analysts say:

  • Buy, sell, or hold?: Analysts are divided on Barnes & Noble, with equal numbers rating the stock a buy, sell, and hold. Analysts like Barnes & Noble better than competitor Hastings Entertainment overall. Zero out of one analysts rate Hastings Entertainment a buy compared to one of three for Barnes & Noble.

  • Revenue forecasts: On average, analysts predict $1.46 billion in revenue this quarter. That would represent a rise of 4.3% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is a loss of $0.94 per share. Estimates range from a loss of $1.12 to a loss of $0.82.

What our community says:
CAPS All-Stars are split on Barnes & Noble, with 50% rating it an outperform and 50% giving it an underperform rating. Fools haven't been shy with their opinions lately, logging 325 posts in the past 30 days. Barnes & Noble's bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q4

Q3

Q2

Q1

Gross Margin

27.5%

26.4%

23.6%

25.2%

Operating Margin

(5.9%)

4.9%

(0.5%)

(6.3%)

Net Margin

(4.3%)

2.6%

(0.7%)

(4.5%)

One final thing: If you want to keep tabs on Barnes & Noble movements, and for more analysis on the company, make sure you add it to your watchlist.

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At the time thisarticle was published

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