Staples, Inc. (SPLS) - Bear of the Day

By Zacks.com,  October 11, 2012, 01:00:01 AM EDT

We downgraded our recommendation on Staples, Inc. ( SPLS ) to Underperform following dismal second-quarter 2012 results. The quarterly earnings of $0.18 per share missed the Zacks Consensus Estimate of $0.22 and fell 18% from the prior-year quarter due to lower-than-expected sales trends in North America and continuing softness in Europe and Australia. The company witnessed a fall in computer sales and sluggish trends in core categories.

Total sales dropped 6% to $5,498.5 million, and came below the Zacks Consensus Estimate of $5,721 million. Consequently, management lowered its guidance and now expects sales for fiscal 2012 to remain flat compared with the prior year, while the bottom line is expected to increase in low single digits.

We remain cautious about the macroeconomic environment and a sluggish job market, with small businesses and consumers still remaining watchful on their spending. Our target price of $10.50, 7.6X 2012 EPS, reflects this view.
 
STAPLES INC (SPLS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Investing Ideas, Stocks

Referenced Stocks: SPLS



Latest News Video

NASA Funds Development of 3D Printed Food
NASA Funds Development of 3D Printe...
Students Scream Moments After Tornado's Devastation
Students Scream Moments After Torna...
Los Angeles Mayoral Election Known For Low Voter Turnout
Los Angeles Mayoral Election Known ...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.44 0.07  0.52%
F $ 14.95 0.10  0.66%
CLWR $ 3.40 0.14  4.29%
SIRI $ 3.515 0.02  0.43%
MSFT $ 34.85 0.23  0.66%
CSCO $ 24.01 0.07  0.27%
MRK $ 47.33 2.12  4.69%
PFE $ 28.78 0.08  0.28%