Staples, Inc. (SPLS – Analyst Report), a leading retailer of office products and services, released first-quarter fiscal 2015 results, wherein adjusted earnings of 17 cents per share came in line with the Zacks Consensus Estimate. However, the bottom line fell 5.6% from 18 cents a share earned in the year-ago quarter.
Staples provided its sales and earnings guidance for the second-quarter fiscal 2015. The company expects sales in the second quarter to fall year over year, while earnings are projected in the range of 11–13 cents per share. For fiscal 2015, the company still anticipates to generate over $600 million of free cash flow.
Earnings Estimate Revision: The Zacks Consensus Estimate for Staples has remained stable in the last 30 days. In the trailing four quarters, including the quarter under review, the company has an average positive surprise of 0.8%.
Revenues: Staples’ total sales declined 6.9% year over year to $5,262 million and missed the Zacks Consensus Estimate of $5,458 million. However, on a currency neutral basis and excluding the impact of North American store closures, sales inched down 0.6%.
Zacks Rank: Currently, Staples carries a Zacks Rank #4 (Sell) which is subject to change following the earnings announcement.
