The Gory Details on Office Depot's Double Fumble
Office Depot (NYS: ODP) reported earnings on Aug. 7. Here are the numbers you need to know.
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.
While many retailers continue to struggle in these tough economic times, a select few are changing the face of the business, and reaping outsized 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.
- Add Office Depot to My Watchlist.
The article The Gory Details on Office Depot's Double Fumble originally appeared on Fool.com.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. The Motley Fool has no positions in the stocks mentioned above. 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.