NEW YORK (TheStreet) -- Barnes & Noble (BKS) is scheduled to release its fiscal 2015 fourth quarter earnings results on Thursday morning before the market opens. Analysts have forecast that the bookseller will post a wider net loss and a decline in revenue for the most recent quarter, when compared to the same period last year.
Barnes & Noble is expected to report an earnings loss of 39 cents per share on revenue of $1.18 billion for the quarter ended April 2015.
Last year, the company reported an earnings loss of 93 cents per share on revenue of $1.32 billion for the fiscal 2014 fourth quarter.
Shares of Barnes & Noble closed lower by 1.61% to $26.33 on heavy volume on Wednesday afternoon. By the end of trading today, 1.09 million shares of Barnes & Nobel had exchanged hands as compared to its average daily volume of 629,000 shares.
Separately, TheStreet Ratings team rates BARNES & NOBLE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BARNES & NOBLE INC (BKS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.13% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BKS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BARNES & NOBLE INC has improved earnings per share by 8.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BARNES & NOBLE INC continued to lose money by earning -$1.27 versus -$3.01 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus -$1.27).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 14.1% when compared to the same quarter one year prior, going from $63.23 million to $72.17 million.
- BKS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
- BKS, with its decline in revenue, underperformed when compared the industry average of 9.2%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share
- You can view the full analysis from the report here: BKS Ratings Report