Tuesday, November 15, 2011

Staples Earnings In Line, Shares Fall on Sales Miss (NASDAQ: SPLS)

Staples, Inc. (NASDAQ: SPLS): fell by 3.64% or $-0.56/share to $14.81 after reporting bad sales numbers early this morning. Profit for the quarter ended October 29, 2011 was $326.4M or 47 cents per share which was in line with analyst expectations. However, sales came in at $6.57B versus estimates of $6.71B. Same-store sales fell 12% in Europe and demand was also weak in Australia. The company said it would push for higher holiday traffic by offering the Kindle Fire and Nook, as well as coffee makers.

In the past year, the shares of SPLS have traded as low as $11.94 and as high as $23.75. On average, 10244400 shares of SPLS exchange hands on a given day and today's volume is recorded at 19495180. The shares are currently trading below the 200-day moving average but above the 50-day moving average. The stock may be range bound between these two levels where the 200-day moving average of $15.40 represents resistance and the 50-day moving average of $14.43 would be an area of support.

Staples, Inc. (Staples), is an office products company.

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