STAPLES NET PROFIT DOWN 18% ,SHARES DOWN 7%.

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STAPLES NET PROFIT DOWN 18% ,SHARES DOWN 7%.

 user 2010-03-08 at 1:51:30 pm Views: 66
  • #23424

    http://news.yahoo.com/s/nm/20100302/bs_nm/us_staples
    Staples Net Drops 18%, Full-Year
    Outlook Misses Estimates

    NEW YORK– Staples Inc  reported lower-than-expected quarterly
    profit on weak demand for big-ticket items, and forecast full-year
    earnings well below analysts’ expectations, sending its shares down 7
    percent.Assuming modest economic recovery in 2010, the No. 1 office
    products retailer said it expects full-year earnings of $1.23 to $1.33 a
    share excluding one-time items. Analysts on average were expecting
    $1.40, according to Thomson Reuters I/B/E/S.Last month, smaller rivals
    Office Depot Inc and OfficeMax Inc  posted better-than-expected
    quarterly results and said sales trends were perking up.

    Staples
    said it expects sales to rise in the mid-single-digit percentage range
    in the current quarter, and forecast quarterly earnings of 25 cents to
    27 cents a share before one-time items. Analysts expect 27 cents a
    share.In the fourth quarter, Staples sales at North American stores open
    at least a year, or same-store sales, were up 3 percent on strong
    demand for computers, ink and toner. Sales of big-ticket items like
    business machines and furniture continued to be tepid.

    UBS
    analyst William Truelove said same-store sales fell short of his
    expectations for a 5 percent increase, but the office supplies seller’s
    North American delivery segment performed much better than he
    expected.Fourth-quarter net earnings fell to $238.8 million, or 32 cents
    a share, from $289.1 million, or 40 cents a share, a year earlier.

    Excluding
    one-time items, it earned 38 cents a share, a penny short of analysts’
    average forecast, according to Thomson Reuters I/B/E/S.Sales rose 4
    percent to $6.41 billion, beating analysts’ average estimate of $6.30
    billion.Staples shares were down 7 percent at $24 in premarket trading.