Staples Q1 Results Beat View, but Outlook Disappoints (SPLS)

By
A A A
Share |

Office supply giant Staples, Inc. ( SPLS ) on Thursday posted better-than expected first quarter earnings results, but its relatively cautious second quarter and full-year outlook sent its shares lower in premarket trading.

The Framingham, MA-based company reported first quarter net income of $188.8 million, or 26 cents a share, compared with $143 million, or 20 cents per share, in the year-ago period. Excluding special items, adjusted profit was 28 cents per share.

Sales rose more than 4% from last year, to $6.06 billion.


On average, Wall Street analysts expected a lower profit of 26 cents per share, on $6.03 billion in revenue.

Looking ahead, the company predicted second quarter profit to range from 18 to 20 cents per share, and adjusted full-year results of $1.25 to $1.33. Those estimates could miss those of analysts, who currently expect 20 cents for the second quarter and $1.33 per share for the year.

Staples shares fell 54 cents, or -2.5%, in premarket trading Thursday.

The Bottom Line
We have avoided shares of Staples since our early June 2008 coverage began, when the stock was trading at $23.23. The company has a dividend yield of 1.67%, based on last night's closing stock price of $21.54. The stock has technical support in the $19 price area. If the stock can continue to firm up, we see overhead resistance around the all-time high levels of $24-$25 a share. We would remain on the sidelines for now.

Staples, Inc. ( SPLS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system 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.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: SPLS

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

Most Active by Volume

33,974,386
  • $17.98 ▲ 0.28%
20,763,901
  • $91.29 ▲ 2.06%
19,110,793
  • $7.26 ▼ 1.22%
18,528,869
    $8.33 unch
18,014,920
  • $4.19 ▼ 1.18%
16,448,919
  • $25.83 ▼ 0.19%
14,748,190
  • $7.60 ▼ 1.43%
14,144,383
  • $112.01 ▼ 0.47%
As of 12/24/2014, 02:12 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com