Office supply retailer Staples, Inc. ( SPLS ) on Wednesday posted lower-than-expected first quarter earnings and cut its full-year forecast, sending its shared plummeting in premarket trading.
The Framingham, MA-based company reported first quarter net income of $198.2 million, or 28 cents per share, compared with $188.8 million, or 26 cents per share, in the year-ago period.
Revenue rose 2% from last year to $6.17 billion.
On average, Wall Street analysts expected a higher profit of 32 cents per share, on higher sales of $6.2 billion.
Looking ahead, the company slashed its full-year 2011 earnings forecast to a range of $1.35 to $1.45 per share, down from a prior outlook of $1.50 to $1.60. Analysts currently expect $1.53 per share for the year.
Staples shares fell $3.21, or -16%, in premarket trading Wednesday.
The Bottom Line
Shares of Staples ( SPLS ) have a 2.04% dividend yield, based on last night's closing stock price of $19.65. The stock has technical support in the $15-$16 price area. If the shares can rebound, we see overhead resistance around the $19-$21 price levels.
Staples, Inc. ( SPLS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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