Shares of Staples (NASDAQ:
) are under heavy pressure on Wednesday after the company released
its fiscal second-quarter earnings results prior to the opening
bell. Staples reported net income of $120.43 million or $0.18 per
share, compared to $176.44 million or $0.25 per share, in the year
ago period. This missed Wall Street analysts' consensus EPS
estimates of $0.22.
Total sales for the period were down 6 percent to $5.50 billion.
This also missed analysts' consensus revenue estimates of $5.72
Citing weak trends in the quarter, Staples said that it is
adopting a more conservative sales and earnings outlook and trimmed
its growth forecast for the year.
Staples' Chairman and Chief Executive Officer Ron Sargent said,
"We continue to build momentum in categories beyond office
supplies, but these improvements were more than offset by weakness
in computers and core office supplies during the second
During Wednesday's trading session, SPLS has fallen more than 17
percent and was trading at $11.27 around mid-day.
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