|
|
News Breaks | | | | February 19, 2013 | | 10:27 EDT |  | SPLS, ODP, OMX | Staples rallies after analysts predict gains from rivals' merger
Staples (SPLS) is jumping after several research analysts predicted that the company would benefit significantly from a potential merger between its rivals, Office Depot (ODP) and OfficeMax (OMX). Following reports that Office Depot and OfficeMax had held talks about combining, Citigroup analyst Kate McShane predicted that the combined company would close some of its stores. Staples could gain market share as a result of these store closures, according to McShane. The analyst did, however, warn that that the Federal Trade Commission could "look unfavorably" on a merger between Office Depot and OfficeMax. Meanwhile, Jefferies analyst Daniel Binder believes that Staples is poised to benefit from an Office Depot-OfficeMax merger. But Binder warned that the potential benefit to Staples from a deal could vary widely, based on how many stores the combined entity would close and how many stores it would sell to Staples. The analyst, however, estimates that Staples' revenue could increase a total of $40M-$60M and its earnings per share could climb 5c-10c over the next three years as a result of the transaction. In mid-morning trading, Staples gained $1.90, or 15%, to $14.85, while Office Depot surged 16% to $5.30 and OfficeMax soared 25% to $13.50. | |
|
News For SPLS;ODP;OMX From The Last 14 Days Check below for free stories on SPLS;ODP;OMX the last two weeks. |
|
|
| May 9, 2013 | | 06:02 EDT | | ODP | Acacia Research subsidiary enters into license agreement with Office Depot
 Subscribe for More Information | | | May 7, 2013 | | 10:58 EDT | | ODP, OMX | OfficeMax sees sales declines at less negative rate than in Q1 for rest of year
Says sales weakness that experienced in late 2012 deepened more than expected in Q1. Sees cost synergy opportunity of $400M-$600M by the third year following close of Office Depot (ODP) transaction. Says will continue to make investments in e-commerce platform. Sees sales declines continuing through the year, but at less negative rate than in Q1. Says expects to close a total of 15-20 stores this year, along with selective relocations and downsizes. Says will introduce smaller format store in 2013 in Milwaukee and Portland as pilot program, says new format stores geared specifically towards small business customers. Comments made on the Q1 earnings conference call. | | | 07:11 EDT |  | OMX | OfficeMax sees FY13 revenue to be lower than FY12, consensus $6.88B
Subscribe for More Information | | | 07:10 EDT | | OMX | OfficeMax sees Q2 revenue to be lower than a year ago, consensus $1.59B
Sees April sales trends continue to be negative. Sees Q2 total company sales to be lower than a year ago, including favorable impact of foreign currency translation. The company also expects Q2 operating income margin to remain positive, but signifancatly lower than the adjusted margin for hte prior year period. | | | 07:09 EDT | | OMX | OfficeMax reports Q1 adjusted EPS 11c, consensus 23c
Subscribe for More Information | | | 07:06 EDT | | OMX | OfficeMax announces special dividend of $1.50 per common share
Subscribe for More Information | |
|
|
|
|
|
|
