Office Depot Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of office supplier Office Depot (NYS: ODP) got a paper cut today and fell 10% after reporting earnings.
So what: Results just barely missed estimates but its concern over a weak economy that has made the move worse today. Third quarter revenue of $2.84 billion was just $0.05 billion below estimates and adjusted earnings were flat, a penny below estimates.
Now what: The results weren't terrible but is this really a space you want to be buying now? North American sales fell 4% for Office Depot and the store's position in the value chain just isn't as strong as it used to be. I am a seller with long-term sights, and think Office Depot has a long way to go for this Fool to give it thumbs up.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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.