Barnes & Noble Education stock drops after earnings miss

Barnes & Noble Education Inc. stock plunged 14.3% in Tuesday premarket trading after the bookseller reported a wide fiscal second-quarter earnings and sales miss. Net income totaled $22.5 million, or 41 cents per share, up from $7.5 million, or 15 cents per share, last year. Sales of $627.0 million were up from $495.5 million last year. The FactSet consensus was for EPS of 82 cents and sales of $663.0 million. “While the Company’s fiscal 2022 second quarter results benefitted from many students returning to in-person classes and greater attendance at campus events and sporting activities as compared to the prior year period when much of this activity was curtailed, as anticipated, the Company’s performance continues to be affected by the ongoing COVID-19 environment, including overall enrollment declines, many community colleges continuing to offer virtual classes, in conjunction with broader macro issues including labor challenges, inflationary pressures and supply chain issues,” Barnes & Noble Education said in its earnings release. Barnes & Noble Education stock has nearly doubled, up 91% for the year to date, while the S&P 500 index has gained 24% for the period.

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