Office Depot Third Quarter Earnings Sneak Peek

Office Depot (NYSE:ODP) will unveil its latest earnings on Tuesday, October 30, 2012. Office Depot is a global supplier of office products and services under the Office Depot brand and other proprietary brand names.

Office Depot Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of one cent per share after the company broke even in the year-earlier quarter. During the past three months, the average estimate has moved down from 2 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at one cent during the last month.

Past Earnings Performance: Last quarter, the company fell short of estimates by 0 cents, coming in at a loss of 14 cents per share against a mean estimate of net loss of 9 cents. The company fell in line with expectations in the first quarter.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $57.4 million (23 cents a share) from a loss of $20.1 million (11 cents) a year earlier, missing analyst expectations. Revenue fell 7.5% to $2.51 billion from $2.71 billion.

Stock Price Performance: Between August 28, 2012 and October 24, 2012, the stock price had risen 94 cents (61.4%), from $1.53 to $2.47. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 25, 2012, when shares rose for eight straight days, increasing 25.4% (+58 cents) over that span. It saw one of its worst periods between March 29, 2012 and April 10, 2012 when shares fell for eight straight days, dropping 17.8% (-65 cents) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 3.9% in revenue from the year-earlier quarter to $2.73 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 3.4% in the first quarter and dropped again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 13 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.37 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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