Office Depot Earnings: Everything You Must Know Now

Office Depot, Inc. (NYSE:ODP) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Office Depot, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $-0.14 in the quarter as EPS of $-0.14 in the year-earlier quarter.

Revenue: Decreased 3.52% to $2.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Office Depot, Inc. reported adjusted EPS loss of $0.14 per share. By that measure, the company missed the mean analyst estimate of $-0.10. It missed the average revenue estimate of $2.43 billion.

Quoting Management: “Our second quarter results came in largely as expected, as we remain focused on executing against our multi-year strategic plan,” said Neil Austrian, Chairman and Chief Executive Officer of Office Depot. “Sales continue to be impacted by a sluggish technology category, particularly laptops, as well as ongoing budgetary pressure on our federal accounts. Despite these headwinds, however, we were pleased with our cost reduction actions and progress on our key initiatives. In addition, we remain actively engaged in integration planning related to the proposed merger with OfficeMax, which we continue to expect to close by the end of the year. Shareholders of both companies overwhelmingly supported the merger at concurrent special meetings that were held in early July, and we look forward to closing the transaction and creating an even stronger office solutions provider in an increasingly competitive environment.”

Key Stats (on next page)…

Revenue decreased 11.01% from $2.72 billion in the previous quarter. EPS decreased to $-0.14 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.07 and has not changed. For the current year, the average estimate has moved down from a profit of $0.03 to a profit of $0.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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