“S&P 500 (NYSE:SPY) component Staples Inc. (NASDAQ:SPLS) reported its results for the second quarter. Staples operates a chain of retail stores selling office products.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

Staples Inc. Earnings Cheat Sheet

Results: Net income for Staples Inc. fell to $120.4 million (18 cents per share) vs. $176.4 million (25 cents per share) a year earlier. This is a decline of 31.7% from the year-earlier quarter.

Revenue: Fell 5.5% to $5.5 billion from the year-earlier quarter.”

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“Deere, the world’s largest agricultural equipment maker, reported a lower-than-expected quarterly profit on Wednesday, citing weak sales in China, India and other emerging markets.”

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“Target posted a flat quarterly profit on Wednesday, as it won over shoppers with an expanded selection of food in many stores and discounts for its loyal card holders, while spending more to get ready to open Canadian stores next year.”

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Stock is up 11% pre-market. Short are getting fried in camel oil.

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“Home Depot raised its fiscal-year earnings outlook on Tuesday as tight cost controls helped the world’s largest home improvement chain offset sales weakness and beat Wall Street’s profit estimates in the latest quarter.”

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“One of the ugly themes of Q2 earnings season has been the disappointing revenue announcements.  Of the 447 S&P 500 companies that have announced their quarterly financial results, only 43 percent have beaten analysts’ expectations.  This is the lowest beat rate since Q1 2009.  This is according to data compiled by FactSet.

In contrast, 70 percent of companies have beaten earnings per share (EPS) estimates.”

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“J.C. Penney Co. (JCP) posted a wider loss than analysts estimated and said it won’t meet its annual profit forecast as Chief Executive Officer Ron Johnson’s overhaul of the fourth-largest U.S. department-store company falters.

The fiscal second-quarter net loss of $147 million, or 67 cents a share, compares with net income of $14 million, or 7 cents, a year earlier, the Plano, Texas-based company said today in a statement. Excluding some items, the loss was 37 cents a share. The average estimate of nine analysts surveyed by Bloomberg was for a 14-cent loss.”

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“(Reuters) – JPMorgan Chase & Co filed a formal restatement of its first-quarter results on Thursday to reflect its conclusion that the values of derivatives positions on a London trading desk were originally overstated.

The filing took the form of an amended form 10-Q submitted to theU.S. Securities and Exchange Commission. The filing, like the company’s July 13 announcement, said first-quarter net income was $4.92 billion, or $459 million less than originally reported.

The reduction reflected a pre-tax loss of nearly $6 billion this year ..”

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“Deutsche Telekom AG (DTE), Germany’s largest phone company, reported second-quarter profit that beat analysts’ estimates as lower handset subsidies in the U.S. and a stronger dollar helped offset declining sales in Europe.

Earnings before interest, taxes, depreciation and amortization and some items climbed 0.2 percent to 4.7 billion euros ($5.8 billion), compared with the 4.58 billion-euro average of 10analyst estimates compiled by Bloomberg. Profit on that basis at T-Mobile USA surged 19 percent in euro terms and margins in Germany also rose, the company said today.”

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Europe and their sickly problems have hurt the darlings of the interwebs…. take some medicine already.

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Fannie Mae reported earnings that were better than expected. The company will issue a $2.8 billion dividend to the Treasury.

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“NEW YORK (AP) — McDonald’s Corp. is blaming a sluggish economy for keeping a key sales figure flat in July.

The world’s biggest hamburger chain says revenue at restaurants open at least 13 months was the same as a year ago, as diners pulled back amid a tough economy. After years of outperforming expectations, even through the recession, the results are the latest sign that McDonald’s is starting to feel the effects of the global economic volatility.”

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“Rio Tinto Group (RIO), the world’s third- largest mining company, said first-half profit dropped 22 percent after prices for iron ore, copper and aluminum fell and costs at its operations gained.

Net income declined to $5.9 billion from $7.6 billion a year earlier, London-based Rio said today in a statement. That compares with the $5.04 billion average of 11 analyst estimates compiled by Bloomberg. Profit was boosted by a deferred tax asset of $1 billion after the introduction ofAustralia’s Mineral Resource Rent Tax on July 1.”

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Hulbert’s latest article makes this fascinating statement:

The stock market historically has performed better when earnings growth is slower than when it is faster.

Read the rest of the research here.

Profits have hit a tenth straight q of upside, but that may all be about to change.

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“The second quarter earnings season is almost over with 87% of companies reporting. And so far it has been an unmitigated disaster, with only 51% of companies beating on the far easily fudgible bottom line number (which further facilitates the transition of America to a “part-time worker society” as repeatedly demonstrated here), but a stunning 60% of all S&P member missing on the top line. More importantly, for the first time since the Lehman collapse, year-over-year revenue “growth” will be negative, declining at 1% from Q2 2011. Whether the reason is due to FX exposure in a world in which the USD suddenly found a major bid in the past 3 months, or because of corporate unwillingness to reinvest their cash into their business and increase CapEx is unknown. But one thing is certain: absent central bank intervention, which for some inexplicable reason has seen the PE multiple of the S&P rise to 2012 highs, the stock market would not be where it is today if corporate fundamentals had anything to do with actual stock price.”

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“Chinese companies are warning they will be reporting either losses or declining profits for the first half.  Corporate results are forcing stock markets down and pointing to a contraction in the country’s economy.

China Rongsheng Heavy Industries, China’s largest private shipbuilder, lost 19% of its value when it issued a profit warning at the end of last month.  Yards in the country are in a terrible state—the industry’s orders for new vessels in May were half of what they were a year earlier—yet Rongsheng’s poor prospects had largely been discounted.  The company’s shares tumbled not only because it hadn’t announced any shipbuilding orders this year but also because the U.S. Securities and Exchange Commission implicated Zhang Zhirong, its chairman and founder, in an insider trading scheme relating to the acquisition of Canada’s Nexen by CNOOC, a unit of one of China’s state oil giants.

We can perhaps dismiss Rongsheng as an aberration, but poor results at other companies are indicative of the state of the country’s increasingly troubled

economy. ”

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“Procter & Gamble Co. (PG), the consumer products company targeted by activist investor Bill Ackman, reported fourth-quarter profit that beat analysts’ estimates, helped by price increases.

Net income in the period ended June 30 rose 45 percent to $3.63 billion, or $1.24 a share, from $2.51 billion, or 84 cents, a year earlier, Cincinnati-based P&G said today in a statement. Profit excluding some items totaled 82 cents a share. Analysts projected 77 cents, the average of 21estimates compiled by Bloomberg.”

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“NEW YORK (MarketWatch) — Abercrombie & Fitch Co. ANF +0.65% shares slumped 16% before the bell Thursday. After Wednesday trading closed, the New Albany, Ohio, retailer of clothing for teenagers estimated fiscal second-quarter earnings at 15 cents to 18 cents a share, compared with the 25-cent-a share consensus estimate of analysts surveyed by FactSet.”

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