While less foot traffic and lower sales dragged down Staples Inc.'s (NASDAQ: SPLS) second-quarter profit, mining equipment maker Joy Global Inc.'s (NASDAQ: JOYG) fiscal third-quarter profit soared on strong demand for its products and services.
Staples, the world's largest office supply company, reported Wednesday that it earned $150.2 million, or 21 cents per share, down 16% from its year-ago profit. Sales jumped 18% to $5.07 billion, though same-store sales fell 7% in North America. Results were boosted by the acquisition of Dutch supply chain Corporate Express NV.
Analysts polled by Thomson Reuters had expected a profit of 21 cents per share on revenue of $4.69 billion.
Because of the slowing economy, the Framingham, Mass.-based company also forecast low single-digit earnings per share growth for the full year
Staples shares rose 41 cents, or 1.7%, Wednesday to $25.18. Shares are up 9.2% year to date.
Joy Global said its third-quarter profit rose 55% to $113.1 million, or $1.03 per share, not including charges related to the acquisition of Continental Global and settlement of a union contract. Adjusted earnings came to $134 million, or 81 cents per share. Revenue climbed to $903.8 million from $621.8 million a year ago.
Analysts, on average, had expected adjusted net income of 88 cents per share on revenue of $884 million.
Continued strength in the international markets and a resurgence of the U.S. underground coal market resulted in a sharp increase in orders to $1.5 billion. Original equipment orders rose more than threefold in the quarter, and aftermarket orders grew 40%. Underground equipment orders rose 89% to a record $743 million.
However, shares of Joy Global tumbled $12.53, or 19.1%, Wednesday to $53.05. That's well off the 52-week high of $90.00 in June; shares are down 36.3% in the past three months.
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