Earnings Preview: Barnes & Noble, Inc.

| About: Barnes & (BKS)

Company Profile

Barnes & Noble, Inc. (NYSE:BKS) operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform.

Barnes & Noble, Inc is scheduled to report its fourth quarter earnings results on June 19, 2012, before market open.

Technical Overview

click to enlarge all images

Barnes & Noble has a market cap of $957.18 million and it is currently trading around $15.64 with a 52 week range of $9.35 to $26.00. The stock has 8.01% price performance for the year 2012. The following table provides the key financial ratios for Barnes & Noble:

Key Ratio Value
Current Ratio 1
Profit Margin -0.99%
Return On Assets (ROA) -1.72%
Return On Equity (ROE) -9.27%

Recent News

  • On June 07, 2012, Barnes & Noble announced a special savings on NOOK devices purchased with a MasterCard for a limited time.
  • On May 16, 2012, Barnes & Noble announced that Barnes & Noble.com is the number one online retailer in customer satisfaction in the Books, Music and Video Category according to the ForeSee E-Retail Satisfaction Index (Spring Top 100 Edition).
  • On May 10, 2012, Barnes & Noble to make the Pimsleur Unlimited NOOK App available on Barnes & Noble's award-winning NOOK Tablet. The launch of this free NOOK App will give customers access to the Pimsleur Unlimited series directly on their NOOKs.
  • On May 09, 2012, American Express (NYSE:AXP) announced the launch of American Express Campus Edition Prepaid Card, a reloadable prepaid Card available in more than 500 Barnes & Noble college bookstores across the United States.
  • On April 30, 2012, Barnes and Noble along with Microsoft Corp (NASDAQ:MSFT) announced the formation of a strategic partnership in a new Barnes & Noble subsidiary, which will build upon the history of strong innovation in digital reading technologies from both companies. Microsoft will invest $300 million in Barnes & Noble Inc's digital and college businesses in a deal that values the businesses at $1.7 billion. Microsoft will get a 17.6 percent stake in the new unit, called Newco, while Barnes & Noble will own about 82.4 percent.
  • On Mar 05, 2012, Barnes and Noble introduced a major new advertising campaign for hot-selling NOOK Simple Touch with GlowLight by Barnes & Noble, the world's first E-Ink Reader with patent-pending lighting technology, and the only E-Ink Reader made for bedtime reading.
  • On Feb 21, 2012, Barnes & Noble introduced NOOK Tablet - 8GB For the incredibly low price of $199.

Analyst Guidance and Earnings History

The fourth quarter revenues are expected to be $1.48 billion when compared to $1.37 billion for the same quarter last year. Earnings per share for the fourth quarter are expected to be loss of 93 cents a share, up from loss of $1.04 a share in the year-ago period.

The average price target from analyst for Barnes & Noble is $22.75, with an average rating of HOLD.

Out of the last 4 quarters, Barnes & Noble has missed the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in BKS over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.