Staples Inc. (SPLS - Free Report) , a leading retailer of office products and services, released third-quarter fiscal 2016 results, wherein adjusted earnings of 34 cents a share came in line with the Zacks Consensus Estimate but declined 3% from the year-ago period.
Management projects fourth-quarter fiscal 2016 adjusted earnings in the range of 23–26 cents a share.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has trended downward over the last 7 days. In the trailing four quarters (excluding the quarter under review), the company missed the Zacks Consensus Estimate by an average of 0.2%.
Revenues: Staples generated total sales of $5,355 million that lagged the Zacks Consensus Estimate of $5,411 million and also declined 4.3% year over year. Excluding the effect of the sale of the Staples Print Solutions business in the last quarter, store closures and currency fluctuations, total sales fell 2%. The company plans to shutter at least 50 outlets in North America in fiscal 2016.
For the fourth quarter of fiscal 2016, the company anticipates sales to fall compared with the prior-year quarter.
Key Events: Staples has entered an agreement to dispose off its UK retail business and operations to Hilco Capital Limited.
Zacks Rank: Currently, Staples carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on Staples’ earnings report!
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