Staples EPS Results In-Line With Estimates

Goldman Sachs has published its company update today on Staples SPLS following the release of 3Q2010 earnings. Goldman Sachs writes, "EPS of $0.41, vs. $0.39 last year, met our estimate and beat the Street's $0.40. The 4Q guidance range of $0.39-$0.41 brackets the Street's $0.40 and our $0.41 and drove a narrowing of the FY10 range to $1.27-$1.29 vs. $1.25-$1.29 previously. SPLS also reiterated 2011 guidance of $1.50-$1.60. EBITDA growth looks to have bottomed in 3Q10 at a sluggish 4% rate and is poised to recover to high single-digits just as a buyback levers EPS growth back to double-digits. We continue to expect multiple expansion from here and maintain our CL-Buy rating. Our 2010/2011/2012 earnings estimates remain unchanged at $1.29, $1.60, and $1.80, respectively, as slightly higher sales are offset by higher costs." SPLS closed Thursday at $20.47.