Staples (SPLS) Stock Falls on Mixed Third Quarter Results

Staples (SPLS) shares are dropping after the company matched analysts' bottom line expectations while missing on revenue.
By Tony Owusu ,

NEW YORK (TheStreet) -- Shares of Staples (SPLS) are down by 3.61% to $12 in pre-market trading on Wednesday, following the release of the office supply retailer's third quarter earnings results before the opening bell today.

The Framingham, MA-based company reported a drop in third quarter profits to $198 million, or 35 cents per share on an adjusted basis, matching analysts' expectations for the period.

Revenue for the quarter fell by 6.2% year over year to $5.59 billion versus analysts' $5.66 billion consensus estimates.

For the current quarter, the company issued earnings guidance between 26 cents and 30 cents per share. Analysts are expecting the company to report earnings of 28 cents per share for the period.

The company expects fourth quarter sales to decline by 3.28% to $5.48 billion.

Separately, TheStreet Ratings team rates STAPLES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate STAPLES INC (SPLS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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