Staples Earnings: Here’s Why Investors Don’t Like These Results
Staples, Inc. (NASDAQ:SPLS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.32%.
Staples, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 13.33% to $0.26 in the quarter versus EPS of $0.30 in the year-earlier quarter.
Revenue: Decreased 4.75% to $5.81 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Staples, Inc. reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.27. It missed the average revenue estimate of $5.91 billion.
Quoting Management: “We’re gaining momentum in many parts of our business,” said Ron Sargent, Staples’ chairman and chief executive officer. “We’re driving growth online and in categories beyond core office supplies, and we look forward to building on our progress throughout 2013.”
Key Stats (on next page)…
Revenue decreased 11.47% from $6.57 billion in the previous quarter. EPS decreased 43.48% from $0.46 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.21 to a profit $0.18. For the current year, the average estimate has moved down from a profit of $1.43 to a profit of $1.33 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)