The Washington Post

Barnes & Noble misses Street expectations, but thankfully Nook business is up nearly 40%

Barnes & Noble missed Wall Street expectations with its fiscal third-quarter results on Tuesday, but at least it had some positive news on deck. Not only did the company announce the $199 8GB Nook Tablet, but also its overall Nook business is up almost 40 percent from a year ago.

The company is in the midst of transforming itself from a brick-and-mortar bookseller model to one supported by hardware and digital sales. The big question on investor and consumer minds is if the company can survive in the long-term with incredibly strong competition from Amazon on all fronts. Amazon’s price-busting $199 Kindle Fire is the reason Barnes & Noble launched the $199 Nook Tablet, and it will remain the primary competition for the foreseeable future.

Barnes & Noble reported that revenues were up 5% against the year-ago quarter. Net income ended up at $52 million, which is flat from last year’s earnings. Third quarter earnings per share ended up at $0.71 a share. Analysts had predicted $1.01 per share.

The biggest positive of the report was that the total Nook business revenues were up 38 percent year-over-year to $542 million. Nook hardware sales, including Simple Touch, Color and Tablet, increased 64 percent year-over-year. Digital content sales, including digital books, digital newsstand, and apps, increased a massive 85 percent against the year-ago quarter.

While the news was decidedly mixed, investors did not appear to be shaken in early trading Tuesday. Barnes & Noble’s share price on the NYSE was slightly higher at $13.24 per share, a 1% gain for the day, as of this writing.

Barnes & Noble store photo: Brokentaco/Flickr

Copyright 2012, VentureBeat

Tablet wars intensify: It seems like a new tablet hits the market every day. Here’s a look at a few that are vying for people’s attention.

Must-have gadgets for 2012: Here are some of the top consumer gadgets that have been creating a lot of buzz.

venturebeat_article

Comments
Show Comments

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.