UPDATE 4-Staples profit tops Wall Street view; shares soar

(Adds background on Office Depot, merger talk; updates share movement, paragraphs 18-20)

By Martinne Geller

NEW YORK, Nov 27 (Reuters) - Staples Inc (SPLS.O: Quote, Profile, Research, Stock Buzz) reported better-than-expected quarterly earnings on Tuesday as expense controls and profit gains at its international unit helped offset the impact of lower U.S. same-store sales.

The biggest U.S. specialty retailer of office supplies also reiterated its full-year forecast for 15 percent earnings-per-share growth, sending its shares up more than 11 percent.

Bernstein analyst Colin McGranahan called the results particularly impressive in light of a soft market, Office Depot Inc's (ODP.N: Quote, Profile, Research, Stock Buzz) weak results, and cautious commentary and a more mixed performance from OfficeMax Inc (OMX.N: Quote, Profile, Research, Stock Buzz).

McGranahan said Staples' earnings reflected "the sustainability of the operating model and the strong management team."

The company