Barnes & Noble Plunging 5% On Earnings Miss (BKS)

Barnes & Noble, Inc. BKS shares are down more than 5% in pre-market trading after the book seller reported weaker than expected earnings, and also suspended its dividend. The company reported third quarter earnings of $1 per share, well short of the $1.13 per share Wall Street was looking for. Revenues were also on the light side, coming in at $2.33 billion, versus the $2.38 billion Wall Street expected. “We're pleased with our financial results this quarter, but just as importantly, the third quarter was another big quarter for the Company from the standpoint of key strategic progress that positions us well for the future,” said William Lynch, chief executive officer of Barnes & Noble, Inc. “In the digital area, our eContent business continues to scale quickly such that we now sell twice as many ebooks as we do physical books at BN.com. NOOK Color, launched in the third quarter, was named the best dedicated eReader by the Associated Press. We're very encouraged by the sell-through of that break-through device, as well as the newly launched NOOK Newsstand subscription service and NOOK Kids children's digital library. At retail, our enhanced Educational Toys & Games experience drove 47% comparable growth in the stores, and gives families yet another reason to feel good about shopping at Barnes & Noble.” Additionally, Barnes & Noble has decided to suspend its quarterly dividend payment of $0.25 per share. At last check, shares of Barnes & Noble were off $1.01 to $17.60, a loss of 5.4%.