Barnes & Noble Education (NYSE: BNED) reported Q2 EPS of $0.74, $0.21 worse than the analyst estimate of $0.95. Revenue for the quarter came in at $772.2 million versus the consensus estimate of $773.79 million.

“Our teams continued to execute on our strategic priorities in the first half of fiscal 2020. We succeeded in scaling our bartleby suite of services, enhancing and scaling our FirstDay platform, strengthening our general merchandise business and further growing our physical and virtual store footprint. Despite the rapidly changing nature of the industry and the current downward pressure on our operating results, we have been able to maintain a strong financial position by being diligent in our allocation of capital and cost management,” said Michael P. Huseby, Chief Executive Officer and Chairman, BNED. “Over the last two years, we have made significant strides in our ongoing efforts to position BNED for the future by rapidly transforming to digital products, services and delivery. Consistent with our commitment to enhance value for shareholders, and in response to a number of unsolicited inquiries, the BNED Board of Directors has approved the engagement of a financial advisor to assist with the evaluation of a range of potential strategic opportunities. This review will help position BNED to be able to deliver more immediate benefits for the institutions and students we serve, and allow for the exploration of all strategic paths to enhance shareholder value.”

Outlook

For fiscal year 2020, the Company expects consolidated Adjusted EBITDA to be between $80 million to $85 million. Capital expenditures are expected to be in a range of $40 million to $50 million. The Company expects free cash flow to be between $25 million to $35 million, as compared to $39.7 million in fiscal year 2019. The Company defines free cash flow as Adjusted EBITDA less capital expenditures, cash interest and cash taxes.

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