Staples Q2 Net, Sales Up 11%, In-line with Estimates

Staples reported Q2 net income increased 11% to $178.8 million, or $0.25/share, on sales of $4.29B, matching analysts' average estimates. Staples' international revenue rose 18% to $602.4M, benefiting from a weak dollar, while North American sales increased a more modest 5% as same-store-sales fell 2%. The company expects Q3 and full year EPS growth of 15%, representing $0.41 (in-line with estimates) and $1.48 (topping estimates of $1.44), respectively. Q3 and full year sales are forecast in the low double-digits, with N. American comps slightly negative to flat in Q3 and flat for the full year. Staples said it repurchased 8.1M shares for $198M during Q2 as part of its new $1.5B buyback program. Staples' earnings call is at 8 a.m. Check for Staples' earnings call transcript later today. Shares of Staples were unchanged at 8 a.m. in thin pre-market trading after gaining 0.3% to $23.31 on Monday.

Sources: Press release, Bloomberg, MarketWatch
Commentary: Office Depot Is Cheap Relative To Peers Staples and OfficeMax • Stocks With the Most Analyst Love • Staples Announces $1.5 Billion Stock Buyback
Stocks/ETFs to watch: SPLS. Competitors: ODP, OMX. ETFs: PMR

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