Post-Earnings Report - Staples

LONDON, December 10, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings report on Staples Inc. (NASDAQ: SPLS). On November 19, 2014, the company announced its financial results for Q3 FY14 (period ended November 01, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Staples Inc. (Staples). During Q3 FY14, the company's total sales were $5.96 billion and its GAAP net income from continuing operations was $216.8 million. The Chairman and CEO of Staples, Ron Sargent, stated that the company is building momentum as it reinvents itself, and during Q3 FY14, the company saw accelerated growth in its delivery businesses, gained traction in categories beyond office supplies, and changed the way it works to drive cost savings. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

For Q3 FY14 Staples' total sales declined by 2.5% from $6.11 billion reported in Q3 FY13. The company's reported sales exceeded Bloomberg analysts' forecasts of $5.94 billion. During Q3 FY14, Staples' North American Stores and Online sales fell by 5.9% Y-o-Y to $2.83 billion from $3.01 billion in Q3 FY13, and its Q3 FY14 sales from International Operations declined 4.0% Y-o-Y to $969.6 million from $1,009.9 million in Q3 FY13. Meanwhile, Staples' Q3 FY14 North American Commercial sales grew 3.3% Y-o-Y to $2.16 billion from $2.09 billion in Q3 FY13. The free research on SPLS can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Staples&d=10-Dec-2014&s=SPLS

Staples' GAAP operating income during the reported quarter lowered to $328.2 million, from $366.6 million in Q3 FY13, and its Q3 FY14 GAAP operating income rate decreased 49 basis points Y-o-Y to 5.51%. During Q3 FY14, the company's GAAP net income stood at $216.8 million or $0.34 per diluted share, compared to $135.2 million or $0.21 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report GAAP net income of $286.0 million or $0.44 per diluted share. Excluding the impact of restructuring and other related charges, the gain on the sale of a business, and a $6 million tax benefit, the company reported Q3 FY14 non-GAAP net income from continuing operations of $235.7 million, or $0.37 per diluted share, a decrease of $38 million, or $0.05 per diluted share, from Q3 FY13.

As of November 01, 2014, Staples had free cash flow of $707 million, an increase of $36 million compared to the same period in FY13. Further, the company repurchased 4.6 million shares for $55 million during Q3 FY14, and at the end of the reported quarter, the company had $1.8 billion in liquidity, including $770 million in cash and cash equivalents. In Q3 FY14, Staples paid a quarterly cash dividend of $0.12 of per common share to its shareholders. Sign up and read the free analyst's notes on SPLS at:

http://get.Investor-Edge.com/pdf/?c=Staples&d=10-Dec-2014&s=SPLS

For Q4 FY14, the company expects sales to decrease versus Q4 FY13. The company expects to achieve fully diluted non-GAAP EPS in the range of $0.27 to $0.32 in Q4 FY14. Staples' above guidance excludes any potential impact on earnings per share related to restructuring and other related activities. The company expects to record pre-tax charges in the range of $45 million to $80 million associated with restructuring and other related activities during Q4 FY14. Further, for full-year FY14, the company expects to generate more than $800 million of free cash flow compared to its previous guidance of more than $600 million.

Stock Performance  

On the day of the earnings release, November 19, 2014, Staples' stock rallied 9.09% to end the session at $13.92. The stock has witnessed a mixed momentum since then. On the last close, Tuesday, December 09, 2014, shares of the company finished at $14.46, up 1.05%, after vacillating between $14.10 and $14.80. A total of 24.71 million shares were traded, which was much above its three months average volume of 9.85 million shares. Over the last one month and the previous three months, the company's shares have surged 11.83% and 16.24%, respectively. However, the stock has lost 9.00% since the beginning of 2014. Shares in Staples closed above their 50-day and 200-day moving averages of $12.88 and $12.09, respectively. Furthermore, the stock traded at a PE ratio of 13.17 and has a Relative Strength Index (RSI) of 64.24. Visit Investor-Edge and access the latest research on SPLS at:

http://get.Investor-Edge.com/pdf/?c=Staples&d=10-Dec-2014&s=SPLS

Sneak Peek to Corporate Insider Trading 

In the last one month Staples has reported one insider transaction to the U.S. Securities and Exchange Commission (SEC). On December 05, 2014, John Wilson, President of Staples Europe, sold 26,315 shares, worth $378,410, at a price of $14.38 per share. Complimentary in-depth research on SPLS is available at:

http://get.Investor-Edge.com/pdf/?c=Staples&d=10-Dec-2014&s=SPLS

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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