Office Depot Inc. Earnings: A Swing to Quarterly Profit
Office Depot Inc. (NYSE:ODP) reported its results for the first quarter. Office Depot is a global supplier of office products and services under the Office Depot brand and other proprietary brand names.
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Office Depot Earnings Cheat Sheet for the First Quarter
Results: Reported a profit of $41.3 million (14 cents per diluted share) in the quarter. Office Depot Inc. had a net loss of $14.6 million or a loss 5 cents per share in the year-earlier quarter.
Revenue: Fell 3.4% to $2.87 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Office Depot Inc. reported adjusted net income of 5 cents per share. By that measure, the company fell in line with the mean estimate of 5 cents per share. Analysts were expecting revenue of $2.89 billion.
Quoting Management: “Our first quarter 2012 results showed continued year-over-year earnings improvement despite lower sales,” said Neil Austrian, Chairman and Chief Executive Officer of Office Depot. “The North American Business Solutions Division delivered a strong performance again this quarter.”
The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 3 cents versus a mean estimate of 0 cents per share.
Revenue fell last quarter after increasing in the previous quarter. Revenue rose 0.3% to $2.97 billion in the fourth quarter of the last fiscal year from the year earlier.
The company’s cost of sales slipped to $1.99 billion, a dip of 70.5% from a year ago. Last quarter, cost of sales was 69.3% of revenue versus 70.5% a year earlier.
Looking Forward: The average estimate for the second quarter remains unchanged at 3 cents a share. At 7 cents per share, the average estimate for the fiscal year has fallen from 10 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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