Staples: Here’s What Investors Need to Know Before Earnings

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Staples (NASDAQ:SPLS) will report earnings before markets open on Wednesday, May 22nd. Staples, Inc. retails office supplies, furniture, and technology. The Company’s customers include consumers and businesses in the United States, Canada, the United Kingdom, and Germany. Staples serves its customers through office superstores, mail order catalogs, the Internet, and a contract business.

Here is your Cheat Sheet to Staples Earnings:

Earnings Expectations: Analysts expect earnings of $0.27 per share on revenues of $5.93 billion.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.2 to a profit $0.18. For the current year, the average estimate is a profit of $1.33, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Staples has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 23,080 24,280 24,140 24,660 24,380
Diluted EPS ($) 1.13 1.02 1.21 1.40 -0.31

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 6,374 6,105 5,498 6,353 6,568
Diluted EPS ($) 0.4098 0.27 0.18 -0.89 0.1187

Past Performance:
Staples has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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