The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Staples missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew. GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins increased, net margins dropped.
Staples logged revenue of $6.57 billion. The 16 analysts polled by S&P Capital IQ looked for a top line of $6.70 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.46. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. Non-GAAP EPS of $0.46 for Q4 were 12% higher than the prior-year quarter's $0.41 per share. GAAP EPS of $0.12 for Q4 were 71% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.2%, 60 basis points worse than the prior-year quarter. Operating margin was 7.5%, 20 basis points better than the prior-year quarter. Net margin was 1.2%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.96 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $23.98 billion. The average EPS estimate is $1.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 909 members out of 1,002 rating the stock outperform, and 93 members rating it underperform. Among 306 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 282 give Staples a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Staples is hold, with an average price target of $13.16.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.