Personal Finance

Why Shares of Barnes & Noble Education, Inc. Fell 15% Last Month

BNED Chart

BNED Chart

BNED data by YCharts .

So what

The bookstore chain's stock fell 9% the day its earnings report came out as investors were disappointed with another sizable loss. The stock continued to slide after that, giving up more than 10% over the next three sessions as investors' concerns mounted.

Comparable sales fell 2.8% in the quarter, and revenue increased just 0.1% to $239.2 million, but that was well short of estimates at $245.6 million. On the bottom line, the company posted an adjusted loss of $0.56 per share, slightly better than its total a year ago, but that figure benefited from a higher share count.

CEO Max Roberts noted that the first quarter is seasonally the slowest for the company since many students are off in the summer months, and he blamed the weak results on lower student participation in summer classes.

Now what

The company's guidance also left something to be desired, as it sees comparable sales for the fiscal year in the range of flat to down 2% with overall revenue up 2-4%. On a positive note, B&N Education opened 33 new stores in the quarter just in time for the start of the school year, bringing the total store count to 770. It expects those stores to contribute $110 million in annual revenue.

When B&N Education separated from its former parent Barnes & Noble last year, some thought the company to be the stronger of the two, but the stock has underperformed by more than 35% since the spinoff. There's little in this report to suggest that things will change.

A secret billion-dollar stock opportunity

The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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

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

In This Story


Other Topics


Latest Personal Finance Videos

    Growth in Separately Managed Accounts and Why They Are Attractive for Financial Advisors

    Nasdaq Dorsey Wright Client Portfolio Manager Andy Hyer discusses the growth in Separately Managed Accounts and why they are attractive for financial advisors.

    4 days ago

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More