On Oct. 17, Office Depot (NYSE:ODP) released Q3 earnings for the period ended Sept. 30.
- Revenues and EPS beat analyst estimates by 3.3% and 5.6%, respectively.
- Increased international and North American sales led to a 10.4% increase in revenues.
- EPS increased to $0.47, helped by no impairment charges and a decline in administrative expenses.
- Increased net income and favorable changes in working capital led to a increase in free cash flow to $575 million.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$3,734 |
$3,857 |
$3,493 |
10.4% |
|
Net Profit |
-- |
$133 |
($48) |
N/A |
|
EPS |
$0.44 |
$0.47 |
($0.15) |
N/A |
|
Diluted Shares |
-- |
285 |
312 |
(8.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
30.77% |
29.96% |
0.81 |
|
Operating Margin |
4.96% |
(2.77%) |
7.73 |
|
Net Margin |
3.45% |
(1.37%) |
4.82 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$329 |
$833 |
(60.5%) |
|
Accounts Rec. |
$1,442 |
$1,279 |
12.7% |
|
Inventory |
$1,414 |
$1,244 |
13.7% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,535 |
$1,255 |
22.3% |
|
Long-Term Debt* |
$591.5 |
$552.6 |
7.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$792 |
$414 |
91.2% |
|
Capital Expenditures |
$218 |
$201 |
8.1% |
|
Free Cash Flow |
$575 |
$213 |
169.7% |
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Related companies:
- Staples (NASDAQ:SPLS)
- OfficeMax (NYSE:OMX)
- Banta (NYSE:BN)
- ACCO Brands (NYSE:ABD)
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Retail editor and Inside Value team memberDavid Meier reviewed this article. He does not own shares in any of the companies mentioned.
