Office Depot Inc. Earnings Cheat Sheet: Streak of Three Straight Losses Snapped

Falling revenue did not prevent Office Depot Inc. (NYSE:ODP) from reporting a profit boost in the third 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 Third Quarter

Results: Net income for the specialty retail company rose to $100.9 million (28 cents per share) vs. $41.3 million (12 cents per share) in the same quarter a year earlier.

Revenue: Fell 2.2% to $2.84 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ODP reported adjusted earnings of 0 cents per share. By that measure, the company fell short of mean estimate of 2 cents per share. Analysts were expecting revenue of $2.89 billion.

Quoting Management: “I’m pleased with the traction we’re getting in our North American businesses despite a lackluster U.S. economy,” said Neil Austrian, Office Depot’s Chairman and Chief Executive Officer. “The successful execution of our key business initiatives is beginning to move the needle.”

Key Stats:

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $20.1 million in the second quarter, a loss of $5.4 million in the first quarter and a loss of $128.1 million in the fourth of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with a loss of -6 cents versus a mean estimate of a loss of 12 cents per share.

Over the last five quarters, revenue has fallen an average of 2.5% year over year. The biggest drop came in the third quarter of the last fiscal year, when revenue fell 4.3% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 5 cents a share to 3 cents over the last ninety days. For the fiscal year, the average estimate has moved from a loss of 4 cents a share to a loss of 2 cents over the last ninety days.

Competitors to Watch: Staples, Inc. (NASDAQ:SPLS), OfficeMax Incorporated (NYSE:OMX), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Walgreens (NYSE:WAG), CVS (NYSE:CVS), Stamps.com Inc. (NASDAQ:STMP), Williams-Sonoma, Inc. (NYSE:WSM), Pier one Imports, Inc. (NYSE:PIR), and Big Lots, Inc. (NYSE:BIG).

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(Source: Xignite Financials)

 

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