Barnes & Noble, Inc. (NYSE:BKS) Disappoints as Investors Were Hoping for Higher Growth

  on Nov 30,2012 Posted in Business News ,Finance
 
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Barnes & Noble, Inc. (NYSE:BKS) tumbled on Thursday after it posted second-quarter net income but its digital content growth remained sluggish as it faces more rivalry from competitors like Amazon (NASDAQ:GOOG) and Google Inc. (NASDAQ:GOOG).

The largest traditional retailer said revenue from its Nook business increased, but device sales moved down because of average selling prices for the Nook. Digital content revenue advanced 38 percent, lower as compared to a 46 percent increase in the fiscal first quarter.

For the three months ended Oct. 27, profit was $2.2 million. That turned to a per-share loss of 4 cents, however, after the impact of preferred stock dividends. That met analysts’ estimates, according to analysts polled by FactSet. Revenue was $1.88 billion, down from analysts expected revenue of $1.91 billion.

With market capitalization of $854.97 million, Barnes & Noble, Inc. (NYSE:BKS) shares were trading within the range of $14.05-$16.06 while its opening price was $16.06. BKS’s current ratio was 1.06 and debt to equity was 0.34. Its return on investment was -2.76%.

BKS belongs to services sector within the industry of Specialty Retail and its archrivals include Staples, Inc. (SPLS) and Office Depot Inc (ODP). Let’s have a look over opponents’ performance.

Staples, Inc. (NASDAQ:SPLS) dropped -1.42% to $11.76 with the total traded volume of 10.86 million shares and Office Depot Inc (NYSE:ODP) surged 2.45% to $3.35 with the total traded volume of 4.30 million shares.

BKS is ahead of its 52 weeks low 52.51% and lagging behind from its 52 weeks high price -45.15%. BKS’s last month’s stock price volatility remained 5.31%. The stock price of BKS is moving down from its 20 days moving average -8.01% and remote negatively from 50 days moving average -1.62%.

BKS’s current year earnings per share dropped -7.89% while its current quarter performance stayed at 16.31%. The Company’s beta coefficient included 1.00. Beta factor calculates the amount of market risk linked with market trade.

 



 

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