Categories Earnings, LATEST, Other Industries
Office Depot posts Q2 earnings of 5 cents vs expectation of 3 cents
Office Depot (ODP) Tuesday reported second-quarter results that surpassed analysts’ estimate on both the top and bottom lines. During the quarter, the company’s net income from continuing operations fell to $19 million, or $0.03 per share, compared to $21 million and $0.04 per share a year ago. Excluding items, the company earned $0.05 a share, above the consensus estimate of $0.03 a share.
Office Depot shares gained over 1% during pre-market trading.
The year-over-year decrease in the earnings was mainly due to lower gross margins from store and supply chain cost deleverage, as well as higher expenses experienced primarily in Q1 2018.
Sales during the quarter rose 11% to $2.6 billion. Analysts had expected $2.58 billion. The company reported a marginal growth of 1% in its product sales, while service revenues soared 120% helped by CompuCom acquisition. Services represent approximately 16% of total company sales.
Business Solutions Division reported a 4% growth in its sales to $1.3 billion, riding on the recent acquisitions and eCommerce growth. Meanwhile, sales of the retail division dipped 5% to $1.1 billion, partially impacted by the adoption of the new revenue recognition standard.
During the quarter, the company closed two stores and ended the quarter with a total of 1,374 stores in the Retail Division.
During the quarter the company said it paid a quarterly cash dividend of $0.025 per share on June 15 to its shareholders.
Most Popular
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
Target (TGT): A look at some of the challenges faced by the retailer in 3Q24
Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and