Barnes & Noble Q1 Earnings: Not a Best Seller


Small cap book retailer Barnes & Noble, Inc (NYSE: BKS) reported fiscal Q1 2018 earnings before the Thursday market open with results missing expectations and shares falling off in the high single digits in morning trading. Total sales fell 6.6% to $853 million as comparable store sales decreased 4.9% after declines in non-book categories outpaced improved book trends during the quarter. The Company also experienced lower online and NOOK庐 sales during the quarter, which were impacted by the prior year eBook settlement and lower promotional activity. The net loss improved to $10.8 million versus a loss of $14.4 million. The CEO commented:


“Our first quarter earnings results improved over the prior year, as we were able to mitigate the sales decline through expense reductions. We expect to improve our performance in the back-half of the year, which coupled with our focus on expense reduction, will enable us to achieve EBITDA of $180 million.”

A technical chart for Barnes & Noble shows a downtrend that appears to have started to reverse a few months ago with shares creeping back up to former support level:


A long term performance chart shows shares of Barnes & Noble still below 2015 highs (but back to breakeven)while theBarnes & Noble Education Inc (NYSE: BNED) small cap spinoff has underperformed andshares of large cap Amazon.com, Inc (NASDAQ: AMZN) appear to have paused again:


Finally, here is a quick recap of small cap Barnes & Nobles recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

Earnings History7/30/201610/30/20161/30/20174/29/2017
EPS Est. -0.13 -0.34 1.13 -0.23
EPS Actual -0.2 -0.29 0.96 -0.05
Difference -0.07 0.05 -0.17 0.18
Surprise % -53.80% 14.70% -15.00% 78.30%
EPS TrendCurrent Qtr. (Jul 2017)Next Qtr. (Oct 2017)Current Year (2018)Next Year (2019)
Current Estimate -0.12 -0.22 0.55 0.61
7 Days Ago -0.12 -0.22 0.55 0.61
30 Days Ago -0.12 -0.22 0.55 0.61
60 Days Ago -0.12 -0.22 0.55 0.61
90 Days Ago -0.15 -0.26 0.42 0.48

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