Barnes & Noble’s Q4 Loss Sends Shares Plummeting (BKS)

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Bookseller Barnes & Noble, Inc. ( BKS ) late Monday posted a worse-than-expected fourth quarter loss, despite a large uptick in sales, sending its shares plunging in premarket trading Tuesday.

The New York-based company reported a fiscal fourth quarter net loss of $32.1 million, or 58 cents per share, compared with a loss of $2.1 million, or 5 cents per share, in the year-ago period. Excluding one-time benefits, its adjusted loss was 89 cents per share.

Sales rose 19% from last year, to $1.3 billion.

On average, Wall Street analysts expected a smaller adjusted loss of 81 cents per share, on slightly lower revenue of $1.28 billion.

B&N also said that same-store sales fell 3.1% from last year. Same-store sales are a key metric used to measure a retailer's health.

Barnes & Noble shares fell $1.31, or -8%, in premarket trading Tuesday.

The Bottom Line
We have been avoiding shares of BKS since our early June 2008 coverage began, when the stock was trading at $27.31. The company has a 6.09% dividend yield, based on last night's closing stock price of $16.41. The stock has technical support in the $13 price area. If the shares can firm up, we see overhead resistance around the $20 price level. We would remain on the sidelines for now.

Barnes & Noble, Inc. ( BKS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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