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