Office supplies retailer Staples Inc. (NASDAQ: SPLS) reported fourth quarter and full year earnings this morning that topped expectations, if only barely. The company reported fourth quarter EPS of $0.41 versus a consensus estimate of $0.40 and revenue of $6.46 billion compared with an estimate of $6.45 billion.
Office Depot Inc. (NYSE: ODP) jumped nearly 20% after posting better-than-expected earnings yesterday, and OfficeMax Inc. (NYSE: OMX) rose nearly 10% following its earnings release earlier this month.
The office supply business has been a tough one for retailers as spending cuts on supplies is an easy way for companies to save money. Government buyers too have pulled back as the cuts to their budgets have dampened spending on pencils and notebooks.
Staples expects the current fiscal year to be one of slow growth in the US and of soft demand in Europe. The company “expects full year sales to increase in the low single-digits compared to the prior year, and full year diluted earnings per share to increase in the high single-digits versus adjusted diluted earnings per share of $1.37 achieved in 2011.”
Shares in Staples are up 3% in the pre-market, at $16.48, in a 52-week range of $11.94-$21.50.
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