Office Depot Hits Estimates in Solid Quarter

Before you go, we thought you'd like these...
Before you go close icon

Office Depot (NYS: ODP) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Office Depot met expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased.


Margins increased across the board.

Revenue details
Office Depot reported revenue of $2.87 billion. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $2.89 billion on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $2.97 billion.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS were $0.14 for Q1 compared to -$0.05 per share for the prior-year quarter.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.7%, 120 basis points better than the prior-year quarter. Operating margin was 2.7%, 150 basis points better than the prior-year quarter. Net margin was 1.7%, 190 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.66 billion. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $11.34 billion. The average EPS estimate is $0.07.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 484 members out of 620 rating the stock outperform, and 136 members rating it underperform. Among 168 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give Office Depot a green thumbs-up, and 39 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 $3.71.

While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business, and reaping outsize rewards. Is Office Depot the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners