The 10-second takeaway
For the quarter ended June 29 (Q2), Office Depot met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share dropped. GAAP loss per share was unchanged.
Gross margins dropped, operating margins grew, net margins increased.
Office Depot booked revenue of $2.42 billion. The 14 analysts polled by S&P Capital IQ predicted a top line of $2.43 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.10. The 17 earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. Non-GAAP EPS were -$0.10 for Q2 versus -$0.14 per share for the prior-year quarter. GAAP EPS of -$0.23 were the same as 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 22.6%, 720 basis points worse than the prior-year quarter. Operating margin was -1.0%, 10 basis points better than the prior-year quarter. Net margin was -2.2%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.62 billion. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $10.35 billion. The average EPS estimate is $0.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 481 members out of 608 rating the stock outperform, and 127 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 142 give Office Depot a green thumbs-up, and 36 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 $4.34.
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