The 10-second takeaway
For the quarter ended June 30 (Q2), Office Depot missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share increased.
Gross margins increased, operating margins contracted, net margins dropped.
Office Depot notched revenue of $2.51 billion. The 12 analysts polled by S&P Capital IQ predicted sales of $2.60 billion on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $2.71 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.14. The 17 earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. GAAP EPS were -$0.23 for Q2 compared to -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.8%, 50 basis points better than the prior-year quarter. Operating margin was -1.4%, 140 basis points worse than the prior-year quarter. Net margin was -2.3%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.80 billion. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $11.20 billion. The average EPS estimate is $0.03.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 491 members out of 617 rating the stock outperform, and 126 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Office Depot a green thumbs-up, and 37 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Office Depot is hold, with an average price target of $3.43.
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