For the first quarter Staples reported earnings of 18 cents a share, falling short of analysts' expectations of 21 cents a share. The retailer reported revenue of $5.65 billion for the quarter, while analysts surveyed by Thomson Reuters expected revenue of $5.62 billion. Staples said that same-store sales fell 4% in the quarter.
As a competitor to Staples, Office Depot's stock sank following the poor results.
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TheStreet Ratings team rates OFFICE DEPOT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OFFICE DEPOT INC (ODP) 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 robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: