UPDATE: Office Depot Shares Jump After Upbeat Q3 Earnings

Shares of Office Depot

jumped more than 12% in pre-market trading after the company reported upbeat third-quarter profit and lifted its full-year guidance. The Boca Raton, Florida-based company posted quarterly net earnings of $29 million, or $0.05 per share, compared to $133 million, or $0.41 per share, in the year-earlier quarter. Excluding non-recurring items, the company's adjusted earnings came in at $0.10 per share. Its sales climbed 55% to $4.07 billion. However, analysts were expecting earnings of $0.09 per share on revenue of $4.05 billion. Same-store sales slipped 3% in the quarter, versus analysts' expectations for a 3.1% drop. Revenue for the North American retail division climbed to $1.7 billion from $1.1 billion, while revenue for North American business solutions division gained to $1.5 billion from $0.8 billion. International division sales rose to $0.8 billion in the third quarter, versus $0.7 billion in the year-ago period. As of September 27, 2014, the company had $965 million in cash and cash equivalents. “Our third quarter results reflect excellence in execution against our critical priorities and merger integration objectives, and we are very pleased to have more than doubled our adjusted operating income from last year's combined pro forma results,” said Roland Smith, chairman and chief executive officer for Office Depot.” Office Depot now expects 2014 adjusted operating income of $255 million to $265 million, versus a prior forecast of not less than $200 million. Office Depot shares gained 12.43% to $5.70 in pre-market trading.