Staples’s Neutral Rating Reaffirmed at Zacks (SPLS)
Staples (NASDAQ:SPLS)‘s stock had its “neutral” rating reissued by Zacks in a note issued to investors on Friday. They currently have a $12.00 price objective on the stock. Zacks‘s price objective would suggest a potential upside of 2.92% from the stock’s previous close.
Zacks’ analyst wrote, “Store closures and unfavorable foreign currency fluctuations weighed on Staples second-quarter fiscal 2014 performance. Though earnings of $0.12 per share came in line with the Zacks consensus Estimate it fell 25% y-o-y. Revenues of $5,220 million did beat but fell 1.5% y-o-y. Escalating competition from online giants, deteriorating trends in core office supply products and waning international sales remain huge concerns. Further, the persistent weakness in the overall sector is putting additional pressure on revenues. Anticipating not much relief in the near term, management issued a trimmed guidance for the coming quarter. However, to combat odds, Staples has resorted to enhancing online sales and aggressive store rationalization, apart from initiating a cost reduction program. We believe that this aggressive approach by the company, which is in sync with the changing trends, will drive sales in the future. But for the time being, we prefer to remain on the sidelines and maintain our Neutral stance on the stock.”
Shares of Staples (NASDAQ:SPLS) traded up 0.26% during mid-day trading on Friday, hitting $11.69. The stock had a trading volume of 3,683,395 shares. Staples has a one year low of $10.70 and a one year high of $16.67. The stock has a 50-day moving average of $11.25 and a 200-day moving average of $11.78. The company has a market cap of $7.531 billion and a price-to-earnings ratio of 14.52. Staples also was the recipient of a large drop in short interest during the month of August. As of August 15th, there was short interest totalling 87,475,245 shares, a drop of 8.2% from the July 31st total of 95,335,555 shares. Currently, 13.6% of the company’s stock are short sold. Based on an average daily trading volume, of 7,114,995 shares, the short-interest ratio is currently 12.3 days.
Staples (NASDAQ:SPLS) last posted its quarterly earnings results on Wednesday, August 20th. The company reported $0.12 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.11 by $0.01. The company had revenue of $5.20 billion for the quarter, compared to the consensus estimate of $5.16 billion. During the same quarter in the prior year, the company posted $0.16 earnings per share. The company’s quarterly revenue was down 1.8% on a year-over-year basis. On average, analysts predict that Staples will post $0.97 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on SPLS. Analysts at Wolfe Research downgraded shares of Staples to an “underperform” rating in a research note on Wednesday, July 23rd. Separately, analysts at Goldman Sachs initiated coverage on shares of Staples in a research note on Tuesday, June 24th. They set an “underweight” rating and a $11.00 price target on the stock. Finally, analysts at Morgan Stanley initiated coverage on shares of Staples in a research note on Tuesday, June 24th. They set an “underweight” rating and a $11.00 price target on the stock. Five analysts have rated the stock with a sell rating, eight have given a hold rating and one has given a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $12.39.
Staples, Inc (NASDAQ:SPLS) is an office products company.
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