NEW YORK (
Barnes & Noble
(BKS - Get Report)
is being hush-hush about its future following
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.
>>Take our Barnes & Noble poll
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?
Barnes & Noble said it is suspending its 25-cent quarterly dividend to preserve its cash to invest in growing its e-reader business, and declined to provide a fourth-quarter forecast, due to Borders bankruptcy last week.
The company put itself up for sale last summer, and prior to a Borders bankruptcy it was speculated that the two companies would merge.