This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Barnes & Noble Tumbles as Partners Take NOOK Tablet

NEW YORK ( TheStreet) -- What was supposed to be Barnes & Noble's (BKS - Get Report) saving grace has turned into a tale of woe, and the final chapter is now written.

Barnes & Noble shares were tumbling on today's weak earnings report, falling 14% to $16.21.

As part of the book retailer's abysmal fourth-quarter earnings, Barnes & Noble announced that it would be sourcing its NOOK hardware to a third-party to limit the losses associated with developing and building the tablet.

For the quarter, Barnes & Noble lost $2.11 a share on $1.28 billion, a 7% year-over-year decline. Analysts were looking for a loss of 97 cents a share on revenue of $1.33 billion.

The NOOK segment had revenue of $108 million for the quarter, down 34% year-over-year. Device sales continue to be poor, as the tablet game is dominated by the likes of Apple's (AAPL - Get Report) iPad and devices running Google's (GOOG - Get Report) Android operating system. NOOK EBITDA losses were $177 million for the fourth quarter, which includes $133 million in inventory write-downs.

What was supposed to be a home run deal for Barnes & Noble, as well as Microsoft (MSFT - Get Report), when the NOOK partnership was announced last year, now appears to be nothing more than a weak ground ball to second base.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
BKS $11.75 0.00%
GOOG $693.01 0.00%
MSFT $49.87 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs