Staples, Inc. Earnings Cheat Sheet: Positive Earnings Streak

S&P 500 (NYSE:SPY) component Staples, Inc. (NASDAQ:SPLS) reported net income above Wall Street’s expectations for the second quarter. Staples, Inc. is an office products company with segments of: North American Delivery, North American Retail and International Operations.

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Staples Earnings Cheat Sheet for the Second Quarter

Results: Net income for Staples, Inc. rose to $176.4 million (25 cents per share) vs. $129.8 million (18 cents per share) in the same quarter a year earlier. This marks a rise of 36% from the year earlier quarter.

Revenue: Rose 5.2% to $5.82 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SPLS reported adjusted net income of 22 cents per share. By that measure, the company beat the mean estimate of 19 cents per share. It beat the average revenue estimate of $5.65 billion.

Quoting Management: “Our second quarter results show that our team’s hard work continues to pay off,” said Ron Sargent, Staples’ chairman and chief executive officer. “Our core business is solid, our growth initiatives are building momentum, and we delivered better than expected earnings and cash flows.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 5% and in the fourth quarter of the last fiscal year, the figure rose 17.5%.

Revenue has risen the past four quarters. Revenue increased 1.9% to $6.17 billion in the first quarter. The figure rose 0.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 0.3% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 4 cents, and in the fourth quarter of the last fiscal year, it fell short by 2 cents.

The company’s cost of sales rose 5.1% from a year earlier. Last quarter, cost of sales was 73.5% of revenue, similar to a year earlier.

Competitors to Watch: OfficeMax Incorporated (NYSE:OMX), Office Depot, Inc. (NYSE:ODP), Walgreen (NYSE:WAG), CVS (NYSE:CVS), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), Williams-Sonoma (NYSE:WSM), Bed, Bath & Beyone (NASDAQ:BBBY), Stamps.com Inc. (NASDAQ:STMP) and United Stationers Inc. (NASDAQ:USTR).

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(Source: Xignite Financials)