Staples, Inc. (SPLS) posted lower-than-expected first-quarter 2011 results. The quarterly earnings of $0.28 per share missed the Zacks Consensus Estimate of $0.32 and remained flat compared with the prior-year quarter. Given the underperformance, the company took a cautious stance and trimmed its fiscal 2011 earnings guidance.
The company now expects earnings between $1.35 and $1.45 per share, down from a range of $1.50 to $1.60 projected earlier. Management now forecasts sales to be flat to marginally positive in the second quarter and to increase in the low single-digits in fiscal 2011.
We remain cautious about the macroeconomic environment and sluggish job market. As a result, consumers and small businesses still remain watchful on their spending. We observe that the demand for office products is closely tied to the health of the economy.
STAPLES INC (SPLS): Free Stock Analysis Report
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