UPDATE: Staples Q4 Profit Beats Estimates

posted better-than-expected adjusted earnings for the fourth quarter. The Framingham, Massachusetts-based company posted a quarterly net loss of $260.4 million, or $0.41 per share, versus a year-ago profit of $212.4 million, or $0.33 per share. Excluding one-time items, its adjusted profit slipped to $0.31 per share from $0.33 per share. Its sales declined 4% to $5.66 billion, versus $5.87 billion. However, analysts were expecting earnings of $0.30 per share on revenue of $5.76 billion. North American Stores and Online sales dropped 7% to $2.7 billion in the quarter, while North American Commercial sales rose 5% to $2.1 billion. International Operations sales tumbled 11% to $898 million in the quarter. Non-GAAP operating income rate shrank 69 basis points to 5.07% from 5.76%. At the end of 2014, Staples had $1.7 billion in liquidity, including $627 million in cash and cash equivalents. "During the fourth quarter we achieved strong sales growth in our North American delivery businesses, further optimized our retail store network, and improved profitability in our International business," said Ron Sargent, Staples' chairman and chief executive officer. "Our strategic reinvention is gaining momentum, and in 2015 we expect to benefit from the investments we've made to accelerate sales and earnings growth." For the first quarter, Staples expects non-GAAP earnings of $0.16 to $0.18 per share. The company also projects sales to drop from the year-ago quarter. Staples shares fell 0.54% to close at $16.50 yesterday.