What to Expect When Staples Reports Earnings
May 17, 2016 by Chris LangeStaples Inc. (NASDAQ: SPLS) is scheduled to report its fiscal second-quarter financial results before the markets open on Wednesday. The Thomson Reuters consensus estimates are calling $0.16 in earnings per share (EPS) on revenue of $5.09 billion. In the same period of the previous year, the specialty retailer posted EPS of $0.17 and $5.26 billion in revenue.
Recently, the merger between Staples and Office Depot Inc. (NASDAQ: ODP) was denied by regulators on an antitrust basis. As the regulators saw it, this would hurt competition within this segment of the retail industry. After this decision, both companies lost their merger premiums and shares promptly dropped.
As part of the merger not going through, Staples is required to pay Office Depot a break-up fee of $250 million. Other fallout from this failed merger includes Staples terminating its agreement to sell more than $550 million in large corporate contract business and related assets to Essendant.