Barnes & Noble Stock Shares Gain As Earnings Top Estimates
Ticker.tv News | Jun 23, 2016 08:24AM ET
Barnes & Noble (NYSE:BKS)h3 Barnes & Noble Inc. Earnings and Technicals/h3
On Wednesday after the close, Barnes & Noble announced fourth quarter earnings that topped analyst estimates and sent shares spiking in the post market session.
The company announced a fourth quarter adjusted loss of 24 cents per share on $876.7 million, compared to analyst expectations of $889.2 million in revenues. Comparable store sales only decreased by 0.8%, while analysts were expecting a 1% decrease.
For fiscal 2017, Barnes & Noble expects comparable bookstore sales to range between approximately flat to an increase of about 1%. Full-year consolidated EBITDA is projected to be between $200 million and $250 million, with retail EBITDA of $240 million to $280 million and NOOK EBITDA losses declining to a range of $30 million to $40 million.
Currently analysts have an average price target of $17.00.
Looking at the chart, you will see that shares gained some momentum in the post-market session, with highs coming in at $11.32 after closing the day at $10.44, equaling a 8.4% jump in value. Shares did however run into some resistance, and came in just a little bit, but we should see some more at the $11.50, $12 and $12.5 levels while support will come in at $11 and $10.50.
Shares are currently looking to gap up just over the 200-day moving average sitting at $11.23, so it will be important for bulls that it holds this crucial level on volume. Look for shares to be more active than normal following their earnings release with increased volatility and volume.
h3 CEO Comments/h3h3 BKS Profile/h3“As we look ahead to fiscal 2017 and beyond, we are focusing on executing a number of initiatives to grow bookstore and online sales, reduce Retail and NOOK expenses and grow our Membership base,” said Ron Boire, Chief Executive Officer of Barnes & Noble, Inc. “We believe our marketing, merchandising and Membership initiatives will lead to increased traffic and conversion in our stores. We are also excited about our plans to open four new concept stores opening later this year, beginning with the first store opening this October in Eastchester, NY. We look forward to discussing these initiatives at our Investor Day.”
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Barnes & Noble, Inc. retails books, textbooks, magazines, newspapers, and other contents in the United States. It sells trade books, including hardcover and paperback consumer titles; mass market paperbacks, such as mystery, romance, science fiction, and other fiction; children’s books; eBooks and other digital content; textbooks and course-related materials; NOOK and related accessories; bargain books; gifts; emblematic apparel and gifts; school and dorm supplies; café products and services; educational toys and games; and music and movies. The company sells its products directly to customers through its bookstores or on barnesandnoble.com. As of August 3, 2015, it operated through 648 Barnes & Noble bookstores in 50 states, as well as BN.com and nook.com Websites. The company was founded in 1986 and is based in New York, New York.
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