Here’s Why Office Supply Shares are Tanking
Office Depot Inc (NYSE:ODP) disappointed with its Q3 earnings numbers. Sales came in at $2.4 billion against expectations of $2.9 billion. That’s also 2% below the previous year. Net earnings were $92 million ($0.28 per share) versus $32 million ($0.12 per share) last year.
The company’s gross margins improved across all its business divisions. “I’m pleased with the traction we’re getting in our North American businesses despite a lackluster U.S. economy, said Neil Austrian, Office Depots Chairman and Chief Executive Officer. “The successful execution of our key business initiatives is beginning to move the needle.” Well, doesn’t look like investors agree.
Investing Insights: Office Depot Inc. Earnings Cheat Sheet: Streak of Three Straight Losses Snapped.
Here’s a look at how other office supply stocks are performing:
- Office Depot (NYSE:ODP): The shares recently traded at $14.61, down $0.48, or 3.18%, on the day. The shares have traded in a 52-week range of $11.94 to $23.75 and its market capitalization is $10.35 billion. About the company: Office Depot, Inc. operates a chain of office product warehouse stores in North America, Europe, Asia and Central America. The Company sells branded merchandise and provides business services primarily to small and medium-sized businesses and the home office market.
- Staples (NASDAQ:SPLS): The shares recently traded at $334.29, down $6.40, or 1.88%, on the day. The shares have traded in a 52-week range of $215 to $361.94 and its market capitalization is $42.45 billion. About the company: Staples, Inc. retails office supplies, furniture, and technology. The Company’s customers include consumers and businesses in the United States, Canada, the United Kingdom, and Germany. Staples serves its customers through office superstores, mail order catalogs, the Internet, and a contract business.
- Office Max (NYSE:OMX): The shares recently traded at $5.36, down $0.50, or 8.53%, on the day. The shares have traded in a 52-week range of $3.90 to $19.20 and its market capitalization is $462.70 million. About the company: OfficeMax Inc sells and market office products. The Company distributes and retails a variety of products such as office supplies, technology products, and business furniture. OfficeMax sells through stores located throughout the United States, Canada, and Mexico, and many of the products are also sold through its catalog and online.
(Note: Selected financial data are sourced from Google Finance. All data are assumed to be accurate.)
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