Staples Receives Negative Earnings Outlook Update from Jefferies Group (SPLS)
Jefferies Group cut their earnings per share (EPS) estimates on shares of Staples (NASDAQ:SPLS) in a research note issued on Thursday, AR Network reports. The firm currently has a “hold” rating and a $14.00 price objective on the company’s shares. They previously had a $15.00 price objective on the stock. Jefferies Group’s price objective indicates a potential downside of 1.86% from the stock’s previous close.
The analysts wrote, “SPLS experienced soft Q2 results that showed significant secular pressures and macroeconomic headwinds. Core products declined worse than expected and fast growing categories are not big enough to offset lost ground. Meanwhile price investments are being made as costs are cut, but competition is doing the same, particularly in technology. We think management is about to get more aggressive on cost cutting, so we expect more charges.”
Staples (NASDAQ:SPLS) traded down 1.51% on Thursday, hitting $14.05. 7,252,061 shares of the company’s stock traded hands. Staples has a 52 week low of $10.57 and a 52 week high of $17.30. The stock has a 50-day moving average of $16.60 and a 200-day moving average of $14.6. The company’s market cap is $9.328 billion. Staples also was the target of some unusual options trading activity on Wednesday. Stock traders bought 10,846 call options on the stock. This represents an increase of 729% compared to the average volume of 1,308 call options.
Staples (NASDAQ:SPLS) last issued its quarterly earnings data on Wednesday, August 21st. The company reported $0.16 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.18 by $0.02. The company had revenue of $5.30 billion for the quarter, compared to the consensus estimate of $5.37 billion. During the same quarter in the prior year, the company posted $0.18 earnings per share. The company’s quarterly revenue was down 2.2% on a year-over-year basis. On average, analysts predict that Staples will post $1.32 earnings per share for the current fiscal year.
A number of other firms have also recently commented on SPLS. Analysts at Janney Montgomery Scott cut their price target on shares of Staples from $17.00 to $16.00 in a research note to investors on Wednesday. Separately, analysts at BB&T Corp. cut their price target on shares of Staples from $19.00 to $17.00 in a research note to investors on Wednesday. Finally, analysts at Barclays Capital reiterated an “equal weight” rating on shares of Staples in a research note to investors on Wednesday, August 14th. They now have a $13.00 price target on the stock.
Two research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and three have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $14.38.
Staples, Inc (NASDAQ:SPLS) is an office products company.
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