Barclays Maintains an 'Underweight' on Barnes and Noble (BKS); 1Q in Line - NOOK Details Released
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Price: $6.49 --0%
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Underweight' on Barnes and Noble (NYSE: BKS) price target of $10.00.
Barclays analyst says, "Barnes & Noble reported fiscal 1Q EPS of $(0.99),
below our estimate of $(0.91) and compared to $(1.02) last year. Retail comps came in at (1.6)% vs. our estimate of (3.0)% and (0.9)% last year. According to management, the closing of nearby Borders stores positively impacted sales by approximately $18 million."
"The company expects 2012 sales to increase by $150M - $200M following the Borders liquidation, less than our estimate of $220M - $300M. Importantly, management expects NOOK sales across all segments to increase to $1.8B from $880M last year and $123M in fiscal 2010. EBITDA from continuing operations is expected to be $225M - $265M for the year. Management expects FY EPS to be $(0.50) - $(0.10). Our 2012 EPS estimate remains unchanged at $(0.50)...We continue to rate BKS at UW as we believe the company will face challenges due to the highly competitive E-reader market and declining demand for physical books."
For more ratings news on Barnes and Noble click here and for the rating history of Barnes and Noble click here.
Shares of Barnes and Noble closed at $13.13 yesterday.
Barclays analyst says, "Barnes & Noble reported fiscal 1Q EPS of $(0.99),
below our estimate of $(0.91) and compared to $(1.02) last year. Retail comps came in at (1.6)% vs. our estimate of (3.0)% and (0.9)% last year. According to management, the closing of nearby Borders stores positively impacted sales by approximately $18 million."
"The company expects 2012 sales to increase by $150M - $200M following the Borders liquidation, less than our estimate of $220M - $300M. Importantly, management expects NOOK sales across all segments to increase to $1.8B from $880M last year and $123M in fiscal 2010. EBITDA from continuing operations is expected to be $225M - $265M for the year. Management expects FY EPS to be $(0.50) - $(0.10). Our 2012 EPS estimate remains unchanged at $(0.50)...We continue to rate BKS at UW as we believe the company will face challenges due to the highly competitive E-reader market and declining demand for physical books."
For more ratings news on Barnes and Noble click here and for the rating history of Barnes and Noble click here.
Shares of Barnes and Noble closed at $13.13 yesterday.
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