Staples Inc. (NASDAQ: SPLS) reported its fiscal third-quarter financial results before the markets opened on Wednesday. The company had $0.35 in earnings per share (EPS) on $5.6 billion in revenue. That compares to consensus estimates from Thomson Reuters of $0.35 in EPS on revenue of $5.67 billion. In the same period of the previous year, the specialty retailer posted EPS of $0.37 and $5.96 billion in revenue.
Total sales for the third quarter of 2015 were flat compared to the same quarter of 2014, after excluding the impact of store closures during the past year and changes in foreign exchange rates.
The company closed 18 stores in North America during the third quarter of 2015 and closed 230 stores in North America since the beginning of 2014.
In terms of guidance, Staples expects to have EPS in the range of $0.26 to $0.30 in the fourth quarter, while it expects sales to decrease year over year. The consensus estimates are $0.28 in EPS on $5.48 billion in revenue.
Ron Sargent, Staples chairman and CEO, said:
We’re driving solid sales and earnings growth in our North American Commercial business, and stabilizing results in North American Stores and Online. Our strategic reinvention is on track, and we look forward to accelerating the transformation of Staples with the acquisition of Office Depot.
On the books, the company generated operating cash flow of $703 million and invested $215 million in capital expenditures year to date, resulting in free cash flow of $488 million. The company ended the quarter with $1.9 billion in liquidity, including $782 million in cash and cash equivalents.
Shares of Staples traded down 4.6% to $11.87 midday Wednesday, with a consensus analyst price target of $18.15 and a 52-week trading range of $11.61 to $19.40.
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