NEW YORK (TheStreet) -- Staples (SPLS) shares are up 5.5% to $13.46 in early market trading on Wednesday after the office supplies retailer reported its third quarter earnings results before the opening bell today.
The company reported a quarterly profit of 37 cents per diluted share that came in ahead of analysts' expectations by one cent per share. Staples also reported $6 billion in revenue during the quarter, above the $5.93 billion consensus estimate for the company.
Despite the earnings and revenue beat, the company did see a 4% drop in comparable store sales that was in line with what analysts were expecting for the quarter.
The company also issued fourth quarter earnings guidance between 27 cents and 32 cents per diluted share, while analysts are expecting the company to earn 31 cents per share during the period.
TheStreet Ratings team rates STAPLES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate STAPLES INC (SPLS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."