Staples Sticks to Targets

Revenue totaled $3.47 billion in the most recent quarter.
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Staples

(SPLS)

said second-quarter revenue rose 12% from a year ago, and the office supplies retailer said it expects to meet Wall Street's near-term estimates.

Revenue totaled $3.47 billion in the most recent quarter, up from $3.09 billion a year ago. Staples earned $147.2 million, or 20 cents a share, vs. $122.5 million, or 16 cents a share, a year ago.

Second-quarter North American retail same-store sales increased 3% year over year.

For the third quarter, Staples expects to see earnings-per-share growth in line with average analysts' estimates and low-double-digit sales growth.

The Framingham, Mass., company forecast that full-year revenue would grow in the low double digits and said it was comfortable with analysts' earnings targets, with an EPS growth rate in the high teens. In addition, Staples expects free cash flow of roughly $750 million.

Analysts surveyed by Thomson First Call were looking for a second-quarter profit of 19 cents. The consensus earnings estimates are 32 cents for the third quarter and $1.10 for the fiscal year.

Shares of Staples were down 45 cents to $21.87.