Staples, Inc. (NASDAQ:SPLS) Announcing their Third Quarter Earnings

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By Daniel Craine on November 19, 2014 Company

Before the market opened today, Staples, Inc. (NASDAQ:SPLS) boasted its $6.0 billion in revenue and the $0.37 earnings per share, which is higher than predicted by Thomson Reuters who only predicated $5.92 billion in revenue and $0.36 per share.

Net income, during this year’s third quarter, was $236 million and the same period, last year, the net income was $274 million, earnings per share were $0.42 and they reported $6.11 billion in revenue.

On a GAAP basis, Staples, Inc. (NASDAQ:SPLS) reported a net income of $217 million during the third quarter of 2014. In spite of the restructuring expenses and tax benefits, the non-GAAP reported net income was $236 million.

The third quarter sales for Staples, Inc. (NASDAQ:SPLS) during 2014 were in excess of $2.75 billion which is a decreased of 6% when compared to the same period of 2013. Total operating income for Staples, Inc. (NASDAQ:SPLS) decreased to 7.69% in the last 12 months. This decrease was impacted, in part, by the closing of brick and mortar stores. This decline impacts investments, incentive programs and marketing expenses, but it was offset, at least in part, by reduced rent costs and labor due to store closings.

The North American Commercial division of Staples, Inc. (NASDAQ:SPLS) grew by 3% and Staples.com increased sales by 9%.

Other third quarter highlights include the fact that more than $200 million of annual cost savings, to date, have been secured and they plan to eliminate $500 million more in annual costs.

As of date, Staples, Inc. (NASDAQ:SPLS) has generated more than $700 million in free cash flow, even though more than 150 stores in North American have closed their doors.

The CEO and chairman of Staples, Inc. (NASDAQ:SPLS), Ron Sargent, stated that they are building momentum as Staples, Inc. (NASDAQ:SPLS) is being reinvented. The company incurred almost $50 million in pretax restructuring costs and had recognized a gain of $6 million on the sale of a business during the 2014 third quarter period.

He continued by saying that they achieved accelerated growth in the delivery business during the third quarter and they have gained traction in areas that go beyond office supplies.

Staples, Inc. (NASDAQ:SPLS) is a world class retail that allows customers to shop however and whenever they desire, whether in stores, online or with handheld devices. Staples offers more types of products than ever before, such as items for break rooms, medical and safety supplies, furniture as well as Copy and Print services.

Staples, Inc. (NASDAQ:SPLS) has been in business for more than 27 years serving customers around the world. They operate throughout America, Asia, Australia, Europe and also New Zealand.

Although Staples, Inc. (NASDAQ:SPLS) closed the market Tuesday at $12.76, it opened this morning at $13.09 and at 10:26 a.m. Eastern Daylight Time, it has risen to $14.06. The 52 week outlook ranges from $10.70 to $16.21 with a market cap of 8.92B. They are 98% institutional ownership.