Office Depot Inc. Earnings: Swinging to a Profit
Office Depot Inc. (NYSE:ODP) reported its results for the fourth quarter. Office Depot is a global supplier of office products and services under the Office Depot brand and other proprietary brand names.
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Office Depot Earnings Cheat Sheet for the Fourth Quarter
Results: Reported a profit of $20.4 million (4 cents per diluted share) in the quarter. The specialty retail company had a net loss of $99.4 million or a loss of 39 cents per share in the year-earlier quarter.
Revenue: Rose 0.3% to $2.97 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Office Depot Inc. reported adjuted net income of 3 cents a share. By that measure, the company beat the mean estimate of breaking even. Analysts were expecting revenue of $3 billion.
Quoting Management: Fourth quarter 2011 results were encouraging despite a slow economic recovery in the U.S. and increasing business pressures across Europe,” said Neil Austrian, Chairman and Chief Executive Officer of Office Depot. “I’m pleased with both the traction we’re getting in improving our North American businesses and the restructuring actions being taken in the International Division. I believe that our results are a testament to our improving execution across the enterprise and our focus on fewer initiatives.”
Gross margins were up 1.7 percentage points to 30.3%. This growth appeared to be driven by falling costs, as the figure went down 2.1% from the prior-year quarter while revenue rose 0.3%.
Over the last five quarters, revenue has fallen an average of 1.6% year-over-year. The biggest drop came in the fourth quarter of the last fiscal year, when revenue fell 3.4% from the year-earlier quarter.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 4 cents. For the fiscal year, the average estimate has been unchanged at 6 cents a share.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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