Office Depot (ODP) Stock Slides on Revenue Miss

Office Depot (ODP) stock is falling after the company reported disappointing 2015 third quarter revenue.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Office Depot (ODP) - Get Report stock is declining 1.6% to $7.36 in early morning trading on Tuesday, after the office supplies retailer reported lower than expected revenue for the third quarter of 2015.

Revenue declined 2% year-over-year to $3.69 billion for the quarter ended September 26, missing estimates of $3.74 billion.

The company posted earnings of 16 cents per share for the latest quarter, in line with analysts' estimates.

Earnings were driven by a 3% increase in North American same-store sales, synergies generated from the integration of Office Max and Office Depot, and restructuring in Europe, CEO Roland Smith said in a statement.

Office Depot expects the $6.3 billion acquisition by Staples (SPLS) to close as late as early next year due to regulatory review, Smith noted.

The transaction was originally expected to close by the end of this year.

Separately, TheStreet Ratings team rates OFFICE DEPOT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate OFFICE DEPOT INC (ODP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

You can view the full analysis from the report here: ODP

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