Staples Plummets on Q4 Results

Shares of office-supplies chain Staples

were lower on Wednesday after the company released its fourth-quarter earnings results prior to the opening bell. In the last hour of trade, the stock was down around 8 percent as the company guided for fiscal 2013 earnings which were below expectations. Staples reported income from continuing operations in the fourth-quarter of $89.95 million or $0.14 per share, compared to $283.66 million or $0.41 per share, in last year's corresponding period. On an adjusted basis, net income for the period was $308 million or $0.46 per share, which came in ahead of Wall Street consensus EPS estimates of $0.45 by a penny. Sales for the quarter were up 3 percent to $6.568 billion from $6.374 billion last year. This was below analyst's consensus revenue estimates of $6.72 billion. Looking ahead to fiscal 2013, Staples said that it expects EPS of $1.30 to $1.35. This is below current consensus of $1.43 per share. Sales in the fiscal year are expected to increase in the low single-digits versus 2012 sales of $23.9 billion. Currently, Wall Street has consensus revenue estimates for Staples of $24.30 billion for the fiscal year.