News Summary: Staples 4Q net income falls
THE NEWS: Costs related to Staples turnaround plan helped drive down the office supplier's fourth-quarter net income by 72 percent. Its quarterly revenue and financial outlook for the year missed Wall Street's expectations.
THE CONTEXT: Staples is the largest office supply retailer, a sector hit hard by the recession and slow to recover. Its earnings report comes after Office Depot Inc. and OfficeMax said they would combine to better compete against their larger rival as well as against Internet and discount stores.
WHAT'S NEXT: Staples expects 2013 earnings between $1.30 and $1.35 per share, while analysts expect $1.44 per share.