Barnes & Noble Education (NYSE: BNED) stock plunged during pre-market trading Tuesday as Needham analyst reaffirmed its Hold rating.
Needham analyst Ryan MacDonald has maintained a Hold rating on Barnes & Noble Education (BNED) following the publication of preliminary financial results for fiscal year 2024. While the company’s revenue fell short of expectations, its adjusted EBITDA beat forecasts, indicating a mixed performance.
The company disclosed the preliminary results, including revenue, adjusted EBITDA, and GAAP net income, via an 8K filing after the market closed on Wednesday. Needham views the overperformance of adjusted EBITDA as a crucial element in BNED’s efforts to address liquidity issues and refinance its obligations, particularly as the company aims to refinance its debt before a planned rights offering.
MacDonald emphasized that the outcome of the rights offering will likely be the primary driver for BNED’s stock in the near term. This offering is contingent upon a vote at the upcoming Extraordinary Shareholders Meeting scheduled for June 5, 2024. The analyst considers BNED’s decision to release preliminary results ahead of this critical meeting a wise step.
Despite the mixed financial performance, Needham’s stance remains unchanged, as the firm prefers to await a resolution to the company’s liquidity concerns. The outcome of the rights offering vote is anticipated to be a significant event that could influence the direction of the stock. As such, Needham closely monitors developments before adjusting their rating or outlook on BNED.
Barnes & Noble Education (NYSE: BNED) Stock Price Action
As of 05:12 a.m. (Eastern Time) Tuesday, BNED stock traded at $0.5351, marking a 7.74% decrease compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
