The Gory Details on Barnes & Noble's Double Fumble

Barnes & Noble (NYS: BKS) reported earnings on June 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 27 (Q4), Barnes & Noble missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP loss per share grew. GAAP loss per share grew.


Margins dropped across the board.

Revenue details
Barnes & Noble notched revenue of $1.28 billion. The five analysts polled by S&P Capital IQ predicted revenue of $1.33 billion on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $1.38 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$1.80. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.99 per share. Non-GAAP EPS were -$1.80 for Q4 versus -$0.53 per share for the prior-year quarter. GAAP EPS were -$2.11 for Q4 against -$1.08 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.9%, much worse than the prior-year quarter. Operating margin was -13.9%, 880 basis points worse than the prior-year quarter. Net margin was -9.3%, 510 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is -$0.76.

Next year's average estimate for revenue is $6.47 billion. The average EPS estimate is -$1.01.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 304 members out of 676 rating the stock outperform, and 372 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Barnes & Noble a green thumbs-up, and 104 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 $17.83.

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The article The Gory Details on Barnes & Noble's Double Fumble originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.

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