Staples (SPLS) Beats on EPS, Misses Revenue

Staples, Inc. (SPLS) reported fourth quarter non-GAAP EPS of $0.31 before the opening bell Friday, compared to the consensus estimate of $0.30. Revenues declined 3.7% from last year to $5.66 billion. Analysts expected revenues of $5.77 billion. The stock is currently up 2.73% to $16.95.

For full-year 2014, the office supply chain reported GAAP profit of $134.5 million, or $0.21 per share, compared to $707 million, or $1.07 per share, achieved in fiscal 2013. Non-GAAP net income came in at $623 million while revenue was reported as $22.5 billion.

For Q1/15, Staples provided EPS guidance of $0.16-$0.18 versus consensus of $0.17 per share.

On valuation measures, Staples Inc. shares, which currently have an average 3-month trading volume of 13.23 million shares, trade at a trailing-12 P/E of 17.72, a forward P/E of 17.37 and a P/E to growth ratio of (5.09). The median Wall Street price target on the name is $18.00 with a high target of $23.00. Currently ticker has 1 ‘Buy’ endorsement, compared to 12 ’Holds’ and 5 ‘Sell’.

Profitability-wise, SPLS has a t-12 profit and operating margin of 2.67% and 4.43%, respectively. The $10.56 billion market cap company reported $627 million in cash vs. $1.02 billion in debt in its most recent quarter.

SPLS currently prints a one year return of about 27.80% and a year-to-date loss of around 9%.

The chart below shows where the equity has traded over the last 52 weeks.

Staples, Inc. operates office products superstores. The company was founded in 1985 and is based in Framingham, Massachusetts.

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