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Staples, Inc. Message Board

  • jceandthegirls jceandthegirls Feb 29, 2012 7:30 AM Flag

    Q4 Earnings Release

    Sales: up 1%
    Earnings: 41 cents vs. 38 cents
    Operating margins: up 56BP
    North American Delivery: Sales up 2%; operating margins up 84BP but product margins declined
    North American Retail: Sales; up 3%; SSS up 2% based on higher average order size and slight increase in traffic; operating margin up 99BP
    International Sales: Down 5%; SSS down 9% in Europe and weak sales in Australia; operating margin down 173BP
    Forecast: Company expects sales to increase in low single digits, and earnings to increase in high single digits vs. $1.37 last year.
    My analysis: Feel like Romney in Michigan: We won, but not by much. Today's trading should be interesting.

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    • Earnings that beat expectations but down 7%... Profit taking??

      • 1 Reply to thatfritschkid
      • Could be (a)"buy on the rumor, sell on the news" syndrome; (b)the notion that the "big dog" on the block (no pun intended) should have beat by more; (c) that sales and margins are still weak in Europe and Australia, with only the commitment by management to keep working on it; (d) a cautious forecast, pointing to a better second half of 2012 than the first half; (e) poor government sales; or (f) all of the above.

        Staples is still best of breed in this segment, but until the economy improves even best of breed will suffer. I picked up a few more shares at $15, but might have to be happy with the dividend for a few weeks/months.

 
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