Office supplies retailer Staples Inc. (SPLS) Wednesday said third-quarter profit increased from the prior year, despite a slide in revenues.
Net income for the quarter increased to $216.79 million from last year's $135.23 million. Earnings per share grew to $0.34 from $0.21.
Earnings per share from continuing operations was flat with last year at $0.34. Adjusted earnings per share from continuing operations totaled $0.37, while it was $0.42 last year.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.
Sales slipped to $5.962 billion from $6.112 billion in the prior year. Analysts expected revenues of $5.93 billion.
Ron Sargent, Staples' chairman and chief executive officer, said, "We're building momentum as we reinvent Staples. During the third quarter, we accelerated growth in our delivery businesses, gained traction in categories beyond office supplies, and changed the way we work to drive cost savings."
For the fourth quarter, the company expects sales to decrease from the prior year. The firm expects to achieve adjusted earnings per share in the range of $0.27 to $0.32 for the quarter, while analysts look for $0.31per share.
For the full year, the company expects to generate more than $800 million of free cash flow, an increase from the previous guidance of more than $600 million.
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