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Earnings roundup

Staples raises its full-year forecast

August 18, 2011

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Staples said second-quarter net income rose 36 percent, helped by a tax refund and stronger international revenue.

The office supply retailer based in Framingham also gave a full-year forecast that exceeds Wall Street’s expectations.

Staples Inc. said that net income rose to $176.4 million, or 25 cents per share, from $129.8 million, or 18 cents per share last year.

Net income totaled 22 cents per share excluding a tax refund. Analysts expected earnings of 20 cents per share.

Revenue rose 5 percent to $5.82 billion. Analysts expected $5.64 billion.

Revenue from Staples’ North American Delivery business rose 3 percent to $2.4 billion. Its North American retail revenue rose 1.7 percent to $2 billion.

The company says international revenue rose 15 percent to $1.3 billion, helped by favorable foreign currency exchange.

— Associated Press

Thrifty shoppers increase BJ’s net

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BJ’s Wholesale Club Inc.’s second-quarter net income rose 28 percent as it made more money from membership fees and customers spent more per visit.

Membership-based warehouse club operators were among the businesses that performed well during the recession as consumers looked to stretch their dollars. With the economy still unstable, consumers are still buying in bulk and watching their spending.

“It is clear that our members are doing more of their weekly food shopping with us. And I believe that we have tremendous opportunities to further grow our business,’’ Laura Sen, BJ’s president and CEO, said.

Westborough-Based BJ’s, the nation’s third-largest warehouse club operator, said it earned $45.7 million, or 84 cents per share, for the period ended July 30. That’s up from $35.7 million, or 67 cents per share, a year ago.

The earnings easily topped the 77 cents per share that analysts polled by FactSet expected. It also surpassed BJ’s guidance for earnings between 74 cents and 78 cents per share.

BJ’s said results were buoyed by the average transaction amount, which climbed about 3 percent in the quarter, with food sales up about 5 percent for the second straight year. Shoppers were focused on perishable foods, which posted an 8 percent sales increase. General merchandise sales were up 1 percent.

BJ’s, which runs 190 of its warehouse clubs in 15 states, is being taken private. Leonard Green & Partners and CVC Capital Partners are buying BJ’s in a $2.8 billion deal. The transaction is expected to close in the fourth quarter.

— Associated Press

Eaton Vance’s net up on higher fees

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Investment manager Eaton Vance Corp.’s fiscal third-quarter earnings jumped 63 percent, topping Wall Street’s estimate, as revenue from investment advisory and administration fees surged.

Eaton Vance said that net income was $68.1 million, or 55 cents per share, for the three months ended July 31. That was up from $41.8 million, or 34 cents per share, in the same quarter a year ago.

Analysts had expected net income of 51 cents per share, on average, in the latest quarter, according to a survey by FactSet.

Eaton Vance managed $199 billion in assets as of July 31. That’s up 15 percent from a year ago. But it’s down 2 percent from $203 billion that Eaton Vance managed as of April 30, in part because of a decline in stock prices. The Standard & Poor’s 500 index fell 5 percent over the three months ended July 31.

— Associated Press

Target sees more one-stop shoppers

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Target Corp. is benefiting from the economic downturn, while other retailers are getting battered by it.

The discounter, based in Minneapolis, posted second-quarter profit and revenue that beat Wall Street estimates in part because of a growing frugal trend among Americans who are concerned with job security and other economic woes. Target said that while cost-conscious customers are making fewer shopping trips to save money on gas, they’re increasingly coming into its stores for one-stop shopping.

Target said its results were buoyed by its push into the grocery business, which allows it to offer customers more food items.

Target said profit rose 3.7 percent to $704 million, or $1.03 per share, for the quarter that ended July 30. That compares with $679 million, or 92 cents per share, a year earlier. Revenue rose 4.6 percent to $16.24 billion. Analysts were expecting earnings of 97 cents per share on revenue of $15.9 billion.

The company forecasts third-quarter profit of 70 cents to 75 cents per share, while analysts expect 72 cents. For the full year, Target expects to earn $4.15 per share to $4.30 per share, compared with the $4.14 per share analysts expect.

— Associated Press