While initial analysis would assume Barnes & Noble will benefit from the bankruptcy of Borders, this may not be the case. This realization is weighing down the stock, with shares tanking 10.4% to $16.66 in early Tuesday trading.
The book-selling giant declined to provide guidance for the remainder of the year following its disappointing third-quarter earnings results, and said it is suspending its quarterly dividend.>>The Borders Story: Is This the Final Chapter For the three-month period, Barnes & Noble reported a profit of $60.6 million, or $1 a share, down 24% from $80.4 million, or $1.38, in the year prior. Revenue rose 7% to $2.33 billion, while same-store sales jumped 7%. >>Borders Store Closure Map Wall Street was calling for a profit of $1.13 a share on revenue of $2.38 billion.
Borders Goes Bust: What's Next?