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Staples, Inc. (NASDAQ:SPLS) is scheduled to report its Q2 2012 results on August 15, 2012, before market opens. The street expects EPS and revenue of $0.22 and $5.73B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from SPLS and the news from its closest competitors.

Staples, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last four quarters the company has met or beaten analysts' estimates. In the last quarter it reported $0.30 EPS, in-line with analyst estimates.

Staples, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.22 based on 18 analysts' estimates, same as $0.22 a year ago. Revenue estimates are $5.73B, down from $5.82B a year ago. The median target price by analysts for the stock is $15.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 18, UBS downgraded Staples from Buy to Neutral and dropped the price target from $17 to $13.
  • On March 2, 2012, Caris & Company upgraded the company from Average to Above Average.

Latest News

  • On July 9, 2012, Staples announced that Nexus 7 from Google is now available for pre-sale. Nexus 7 8GB and 16GB will be available in Staples stores nationwide and at Staples.com for just $199 and $249 respectively later this month.
  • On June 27, 2012, Staples, Inc. announced that fiscal 2012 it expects sales to increase in the low single-digits and diluted earnings per share (EPS) to increase in the high single digits versus adjusted diluted earnings per share of $1.37 achieved in fiscal 2011.
  • On June 22, 2012, The new Staples UK iPhone app makes it easy for customers to research and shop for everything they need for their small business or home office, whether on the go or in a Staples store.
  • On June 4, 2012, Staples, Inc. announced that its Board of Directors has declared a quarterly cash dividend on Staples, Inc. common stock of $0.11 per share. The dividend is payable on July 12, 2012, to shareholders of record on June 22, 2012.
  • On May 16, 2012, Staples, Inc. announced that its fiscal 2012 outlook is remain unchanged and expects sales to increase in the low single-digits compared to the prior year and diluted earnings per share to increase in the high single-digits versus adjusted diluted earnings per share of $1.37 achieved in fiscal 2011.
  • On March 6, 2012, Staples, Inc. announced that its Board of Directors has declared a quarterly cash dividend on Staples, Inc. common stock of $0.11 per share, an increase of 10% over the previous quarterly cash dividend of $0.10 per share.

Competitors

Office Depot (NASDAQ:ODP) and OfficeMax (NYSE:OMX) are considered major competitors for Staples, Inc. The chart below compares the revenue development for these companies for the last 10 years.

SPLS Revenue TTM Chart

SPLS Revenue TTM data by YCharts

Looking broader into the competition, Amazon (NASDAQ:AMZN), Target Corp. (NYSE:TGT), and Wal-Mart (NYSE:WMT) are listed in 10-K as competitors for Staples and the table below provides the key metrics for all these companies and the industry.

Staples, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

SPLS Chart

SPLS data by YCharts

Competitors' Latest Development

  • On August 2, 2012, Officemax Inc announced that for the third quarter of 2012, it expects sales to be approximately flat, to slightly higher than, the third quarter of 2011, including the projected unfavorable impact of foreign currency translation.
  • On July 26, 2012, Amazon.com announced that for the third quarter of 2012, it expects net sales to be between $12.9 billion and $14.3 billion, or to grow between 19% and 31% compared with third quarter 2011.
  • On July 23, 2012, Reuters reported that Amazon.com Inc. has planned to expand its mobile platform and broaden its offering of devices beyond e-readers and the Kindle Fire tablet.
  • On July 6, 2012, Dow Jones reported that Amazon.com is developing a smartphone. Foxconn International Holdings Ltd of China is working with Amazon on the device.
  • On July 5, 2012, Target Corp. announced that combined with the outlook for July, the Company is on-track to deliver second quarter sales and adjusted earnings per share in line with the guidance provided at the time of first quarter earnings release.
  • On July 3, 2012, Reuters reported that Amazon.com Inc reportedly agreed on Monday to buy mapping startup UpNext. GigaOM reported that UpNext Founders Raj Advani, Vik Advani, Robin Har and Danny Moon will move from New York to Seattle, where Amazon is based, to lead the e-commerce company's mapping efforts.
  • On June 24, 2012, Reuters reported that Research In Motion, Ltd. is considering splitting its business in two, separating its struggling handset manufacturing division from its messaging network, The Sunday Times reported.
  • On June 13, 2012, Target Corp. announced that its Board of Directors has declared a quarterly dividend of $0.36 per common share. The dividend is payable September 10, 2012 to shareholders of record at the close of business August 15, 2012.
  • On June 12, 2012, The Economic Times reported that Wal-Mart Stores, Inc. plans to snap ties with companies that supply products to its stores if they are involved in any kind of corrupt practices, making it the first retail company to undertake such a stringent initiative in India.
  • On June 11, 2012, Reuters reported that New York City's pension funds became the latest group to file a derivative lawsuit against Wal-Mart Stores Inc based on reported allegations of bribery in Mexico and a possible cover-up by Wal-Mart officials.
  • On June 4, 2012, Amazon.com and Avalon Books announced that Amazon Publishing has acquired the publication rights from Avalon Books to over 3,000 backlist titles predominantly in the Romance, Mystery and Western categories.
  • On May 17, 2012, Wal-Mart Stores Inc announced that for second quarter of 2013, it expects diluted earnings per share from continuing operations to range between $1.13 and $1.18. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.16 for second quarter of 2013.
  • On May 16, 2012, Target Corp. announced that for the second quarter of 2012, it expects adjusted EPS of $1.04 to $1.14 and GAAP EPS of $0.94 to $1.04. For fiscal 2012, the Company has raised its guidance by 5 cents and now expects adjusted EPS of $4.60 to $4.80 and GAAP EPS of $4.10 to $4.30. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.00 for the second quarter of 2012; EPS of $4.29 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $9.19B and is currently trading at $13.33 with a 52 week range of $12.10 - $16.93. The stock's year-to-date performance has been -2.56%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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