Office Depot, Inc. Second Quarter Earnings Preview

Office Depot, Inc. (NASDAQ:ODP) will unveil its latest earnings on Tuesday, July 26, 2011. Office Depot, Inc is a global supplier of office products and services under the Office Depot brand and other proprietary brand names.

Office Depot, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 12 cents per share, a narrower loss from the year earlier quarter net loss of 17 cents. During the past three months, the average estimate has moved down from a loss of 11 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at a loss of 12 cents during the last month. For the year, analysts are projecting a loss of 4 cents per share, a swing from profit of 11 cents last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported 0 cents per share versus a mean estimate of net income of 3 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 12 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.73 billion in revenue this quarter, a rise of 1.1% from the year ago quarter. Analysts are forecasting total revenue of $11.65 billion for the year, a rise of 0.2% from last year’s revenue of $11.63 billion.

Analyst Ratings: Analysts seem relatively indifferent about Office Depot with nine of 15 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 3.2% to $2.97 billion in first quarter. The figure fell 3.4% in the fourth quarter of the last fiscal year from the year earlier, dropped 4.3% in third quarter of the last fiscal year from the year-ago quarter and 4.4% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During June 21, 2011 to July 20, 2011, the stock price had dropped 60 cents (-14.3%) from $4.19 to $3.59. The stock price saw one of its best stretches over the last year between May 9, 2011 and May 13, 2011 when shares rose for five-straight days, rising 12.4% (+52 cents) over that span. It saw one of its worst periods between October 25, 2010 and November 3, 2010 when shares fell for eight-straight days, falling 8.4% (-40 cents) over that span. Shares are down $1.81 (-33.5%) year to date.

(Source: Xignite Financials)

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