Office Depot Earnings: Here’s Why the Stock is Down 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. Shares are down 1.62%.

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Office Depot, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.00 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Decreased 5.39% to $2.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Office Depot, Inc. reported adjusted EPS of $0 per share. By that measure, the company missed the mean analyst estimate of $0.05. It missed the average revenue estimate of $2.77 billion.

Quoting Management: “Although our first quarter results were heavily impacted by the holiday timing, we saw a modest improvement in trends late in the period, which gives us confidence going into the second quarter and, ultimately, in achieving our full-year targets,” said Neil Austrian, Chairman and Chief Executive Officer of Office Depot. “I’m also very pleased with the progress we have made on the merger over the past two months, especially the selection of Mike Newman, Chief Financial Officer of Office Depot, and Bruce Besanko, Chief Financial Officer of OfficeMax, to lead the integration efforts for the two companies.”

Key Stats (on next page)…

Revenue increased 3.63% from $2.62 billion in the previous quarter. EPS were the same at $0.00 in the quarter as EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.10 to a loss $0.09. For the current year, the average estimate has moved down from a profit of $0.10 to a profit of $0.06 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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