Office supply retailer Staples, Inc. (SPLS) reported on Wednesday a drop in sales and profit for the third quarter, but the numbers beat Wall Street’s view.
The Framingham, Massachusetts-based company reported a third quarter net loss of $596.3 million, or 89 cents per share, compared with a net income of $326.4 million, or 47 cents per share, a year ago. However, adjusting for excluded items, the company earned 46 cents per share.
Revenue for the firm fell about -2% to $6.35 billion from $6.48 billion a year ago.
On average, Wall Street analysts polled by Thomas Reuters expected Staples to have an adjusted earnings per share of 45 cents on $6.45 billion in revenue.
Staples shares were up 54 cents, or +4.80%, in premarket trading on Wednesday.
The Bottom Line
Shares of Staples (SPLS) have a 3.91% dividend yield, based on last night’s closing stock price of $11.25. The stock has technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $13.00-$13.50 price levels.
Staples, Inc. (SPLS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.