Bookseller Barnes & Noble, Inc. (
) 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
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
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
Barnes & Noble shares fell $1.31, or -8%, in premarket
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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.1 out of 5 stars.
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