By midafternoon, shares had spiked 17.5% to $4.90. Trading volume of 45.5 million was nearly six times its three-month daily average.
The stationery chain which merged with Office Max last year earned 7 cents a share over the three months to March, 4 cents higher than analysts surveyed by Thomson Reuters expected. Revenue of $4.35 billion slipped nearly 3% year over year, but exceeded expectations of $4.28 billion.
Florida-based Office Depot also said it expects to close 21% of its 1,900 U.S. stores by the end of 2016. By 2014's close, the company said it expects 150 locations to be shuttered.
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 revenue growth, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."