Staples, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Staples, Inc. (NASDAQ:SPLS) will unveil its latest earnings on Wednesday, August 17, 2011. Staples, Inc. is an office products company with segments of: North American Delivery, North American Retail and International Operations.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Staples, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 19 cents per share, a decline of 5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 25 cents. Between one and three months ago, the average estimate moved down and dropped from 20 cents during the last month. For the year, analysts are projecting profit of $1.36 per share, a rise of 7.1% from last year.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the first quarter, it missed the mark by 4 cents as a result of reporting net income of 28 cents against an estimate of profit of 32 cents per share. In the fourth quarter of the last fiscal year, the company fell short of forecasts by 2 cents.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Wall St. Revenue Expectations: On average, analysts predict $5.65 billion in revenue this quarter, a rise of 2.2% from the year ago quarter. Analysts are forecasting total revenue of $25.07 billion for the year, a rise of 2.1% from last year’s revenue of $24.55 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 5% while it rose 17.5% in the fourth quarter of the last fiscal year and 7.2% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 1.9% to $6.17 billion in first quarter. The figure rose 0.1% in the fourth quarter of the last fiscal year from the year earlier, climbed 0.3% in the third quarter of the last fiscal year from the year-ago quarter and 0% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During May 18, 2011 to August 12, 2011, the stock price had fallen $3.04 (-18.4%) from $16.52 to $13.48. The stock price saw one of its best stretches over the last year between June 23, 2011 and July 1, 2011 when shares rose for seven-straight days, rising 4.2% (+64 cents) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 11% (-$1.84) over that span. Shares are down $9.03 (-40.1%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.