Can Barnes & Noble Beat These Numbers?

Barnes & Noble (NYSE: BKS  ) is expected to report Q3 earnings on Feb. 28. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Barnes & Noble's revenues will compress -1.5% and EPS will shrink -25.4%.

The average estimate for revenue is $2.40 billion. On the bottom line, the average EPS estimate is $0.53.

Revenue details
Last quarter, Barnes & Noble recorded revenue of $1.88 billion. GAAP reported sales were 0.4% lower than the prior-year quarter's $1.89 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.04. GAAP EPS were -$0.04 for Q2 compared to -$0.17 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 25.5%, 60 basis points better than the prior-year quarter. Operating margin was 0.1%, 20 basis points better than the prior-year quarter. Net margin was 0.1%, 40 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $7.12 billion. The average EPS estimate is -$1.08.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 308 members out of 665 rating the stock outperform, and 357 members rating it underperform. Among 191 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Barnes & Noble a green thumbs-up, and 113 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Barnes & Noble is hold, with an average price target of $17.14.

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