Borders (BGP) Jumps 20% On Smaller Loss

Shares of Borders Group (NYSE: BGP) are up 21% mid-day after reporting a smaller-than-expected loss after the close.

Borders reported a Q2 GAAP loss of $0.19, versus the analyst estimate of a $0.29 loss. Revenues for the quarter were $749.2 million, versus the consensus of $782.89 million.

CEO George Jones said, "We have not only improved profitability, but also substantially reduced debt, improved cash flow and significantly strengthened our balance sheet."

Wall Street analysts cheered lower expenses at the book retailer. Goldman Sachs analyst said, "we expect more concerted expense controls to kick in over the next several quarters." The firm maintained their Hold rating on the stock.

Shares of Borders are up 21% today to $6.47, with a 52-week range of $3.87 to $16.62.

Borders Group, Inc., through its subsidiaries, operates book, music, and movie superstores. It also operates mall-based bookstores.

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