UPDATE: Staples Reports Downbeat Q1 Earnings, Lowers Profit Projections

Staples Inc SPLS reported downbeat first-quarter results and lowered its profit projections for the year. The group's net profit surged 5% to $198.2 million, or $0.28 per share, from $188.8 million, or $0.26 per share, in the year-earlier period. Its revenue increased 1.9% to $6.17 billion. However, analysts were expecting earnings of $0.32 per share on revenue of $6.2 billion. The group now projects 2011 earnings of $1.35 to $1.45 per share, down from its earlier projections of $1.50 to $1.60 per share. However, analysts were projecting earnings of $1.53 per share for the year. SPLS shares dropped 3.97% to $18.87 in pre-market trading. Read more from Benzinga's Company news.