While earlier this month, OfficeMax (NYSE: OMX) reported a solid third quarter due largely to cost-cutting and the weak dollar, office supply leader Staples' (NASDAQ: SPLS) third quarter report this week was more like that of second-place rival Office Depot (NYSE: OPD)'s third-quarter report last week. That is, profits and domestic same-store sales fell. However, Staples managed to beat expectations (low expectations though they were), sending share prices up after being dragged down with OfficeMax and Office Depot following their reports.

Staples reported Q3 net income of $274.5 million, or 38 cents per share, compared with $289.9 million, or 39 cents per share, in the same period last year. A $38 million charge from the settlement of an employee class-action suit shaved 4 cents per share from Staples' earnings, yet the latest quarter's profit was still 42 cents per share, beating the consensus EPS forecast of analysts surveyed by Thomson Financial, who had expected 40 cents per share.

As Office Depot executives did last week, Staples executives said they expect weak consumer spending due to the housing slump and credit market difficulties to continue into the new year. Yet so far Staples' share price has risen, from a 52-week low of $19.69 before the Q3 report, to close at $23.51 on Wednesday. That's about seven cents shy of halfway from that low back to the 52-week high of $28.00 from mid December of 2006.

The consensus forecast of analysts surveyed by Thomson Financial is for earnings of 48 cents per share for the fourth quarter (up from 46 cents a year ago), or $1.42 per share for the year (up from $1.28 a year ago). The consensus recommendation is to buy Staples, with forecast growth of 20.4 percent over the next three to five years.

For more news on Staples and its rivals, see BloggingStocks' Staples coverage.