NEW YORK (TheStreet) -- Staples (SPLS) stock is plummeting Tuesday after the company recorded profits lower than analysts expected and as second-quarter earnings guidance fell short of forecasts. By early afternoon, shares had dropped 12.9% to $11.66.
In its first quarter, the retailer earned 18 cents a share, 3 cents lower than analysts surveyed by Thomson Reuters expected.
Over the three months to July, management expects net income of 9 cents to 14 cents a share, below consensus of 15 cents a share.
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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 compelling growth in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself."
- You can view the full analysis from the report here: SPLS Ratings Report