Barnes & Noble, Inc. (NYSE: BKS) is set to report its F1Q2017 earnings before the opening bell on Sept. 8. Investors will be closely watching to see if the company can meet Wall Street earnings estimates.
On the average, analysts expect Barnes & Noble, Inc. (NYSE: BKS) to post EPS loss of $0.13 on revenue of $958.68 million. If Barnes & Noble meets those targets, it would suggest bottom-line improvement but topline weakness compared to a similar quarter last year.
Barnes & Noble posted EPS loss of $0.28 on revenue of $1.22 billion in F1Q2016.
Barron’s comment on Barnes & Noble, Inc. (NYSE: BKS)
Barnes & Noble, Inc. (NYSE: BKS) will be releasing F1Q on the heels of a bullish comment from financial magazine Barron’s.
A recent report from Barron said that the notion that Amazon.com, Inc. (NASDAQ: AMZN) will kill Barnes & Noble is wrong. The report highlighted how Barnes & Noble has stood up to Amazon’s disruptive campaigns in books business. Barnes & Noble’s stabilized digital books sales and the company’s profitable stores are two other reasons Barron’s say the legacy bookseller will not be swept away by the Amazon wave.
Management sweetens earnings growth forecast
Confidence in the prospects of Barnes & Noble, Inc. (NYSE: BKS) can also been seen in the management’s bullish earnings projections. The management is now looking for EBITDA to increase in the range of $270 to $310 million in F2020 from a range of $200 to $250 million in F2017.
Lucrative membership program
Barnes & Noble’s membership program that costs $25 a year is also cited as a major source of strength in the company’s financials. Some 6 million people have signed up for Barnes & Noble’s membership program and the renewal rate is 70%. The membership program alone provides some stability in Barnes & Noble’s business model.
Barnes & Noble, Inc. (NYSE: BKS) recently ousted its CEO Ron Boire. The company claimed that the move was inspired by the fact that Boire failed to show that he was a good fit for Barnes & Noble. Len Riggio, executive chairman of the company, has been retained as caretaker CEO pending recruitment of a permanent CEO.