The 10-second takeaway
For the quarter ended May 4 (Q1), Staples met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped.
Margins contracted across the board.
Staples logged revenue of $5.81 billion. The 13 analysts polled by S&P Capital IQ predicted a top line of $5.90 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 $0.26. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. GAAP EPS of $0.26 for Q1 were 3.7% lower than the prior-year quarter's $0.27 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 26.0%, 40 basis points worse than the prior-year quarter. Operating margin was 4.9%, 30 basis points worse than the prior-year quarter. Net margin was 2.9%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.43 billion. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $23.83 billion. The average EPS estimate is $1.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 904 members out of 1,001 rating the stock outperform, and 97 members rating it underperform. Among 312 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 287 give Staples a green thumbs-up, and 25 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 $13.39.
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