Barnes & Noble, Inc (BKS – Snapshot Report) is one of the newest additions to the Zacks Rank #1 (Strong Buy) list. With strong standing in our Style Scores system and favorable estimate revision activity, now may be the right time for investors to take a look at the bookseller.
Third Quarter Earnings
On March 3, Barnes & Noble reported fiscal 2016 third quarter financial results. The company saw earnings of $1.04 per share, surpassing the Zacks Consensus estimate of $1.03 per share. Consolidated net earnings from continuing operations were $80.3 million, compared to net earnings from continuing operations of $39.0 million, or $0.45 per share, in the prior year.
Total revenues for the quarter were $1.4 billion, missing the Zacks Consensus Estimate of $1.423 billion and reflecting a 1.8% decrease from the prior year.
Retail sales, which include Barnes & Noble stores and BN.com, were $1.4 billion, decreasing 1.2% due to lower online sales and store closures. Comparable store sales, however, increased 0.2% for the quarter. Excluding NOOK products, Core comparable store sales increased 1.3% for the quarter.
For fiscal year 2016, Barnes & Noble continues to expect comparable store sales to be approximately flat in comparison to the year ago period. Excluding NOOK products, Core comparable store sales are expected to increase approximately 1%.
Zacks Scores
Barnes & Noble currently has impressive grades in Zacks Style Scores system, with an “A” for Value, an “A” for Growth, and a “C” for Momentum. Its VGM score, which is a weighted combination of the Value, Growth, and Momentum scores, is a commendable “A.”
Estimate Revision Activity
Thanks to a solid showing in its third quarter, there have been two estimate revisions in the last 30 days for Barnes & Noble’s current quarter, one upwards and one downwards. Estimates currently sit at $-0.23 per share, but the company is forecast to see year-over-year growth of 37.84% for the time frame. For next quarter, Barnes & Noble has an even higher year-over-year growth estimate of 93.93%, with an estimate of $0.20 per share.
